Dunpar H.O.M.E Program FAQ

Jan 15, 2020

Dunpar H.O.M.E Program FAQ

What is the “H.O.M.E. Program”?

Dunpar is making it easier for you to buy a new home with their new H.O.M.E (Home Ownership Made Easy) Program.

If you own a home that is worth more than your mortgage and all other loans on your home; YOU have Equity.

Use that Equity for your Deposits on your new Dunpar Home.

No cash, no interest, no payments, no worries.

How do I Qualify for the “H.O.M.E. Program”?

You will qualify for the “H.O.M.E. Program” if all of the following apply to your situation:

  • You own a home in Toronto listed in your name
  • The Market Value* of your home is greater than the outstanding mortgage and all other loans
  • The difference between the Market Value and the mortgage is more than $200,000
  • You have $10,000 for a deposit

*If the difference isn’t enough, a combination of cash deposits may be combined with this offer

Example:

Your home Market Value = $1 ,000,000

Outstanding mortgage + Loans = $750,000

Equity in your home = $250,000

Deposits required on Dunpar Home = $100,000 (secured by the Equity in your home)

Questions about Home

Why do I not have to give a cheque to Dunpar?

We want to make it easy for you if you have Equity.  Instead of you accessing that Equity with a Line of Credit, personal loan, etc. in order to write Dunpar a cheque, Dunpar will skip the middle-man (i.e. bank) and access it directly.

One less headache for you!

Why do I not pay interest or monthly payments?

Dunpar is willing to forgo all that if you have Equity in your Home.

Consider it a gift!

What’s in it for Dunpar and how does Dunpar get their money?

Dunpar is in the business to sell homes and this gives Dunpar the required deposits while making it easy for YOU.

If you sold your house before your New Dunpar home Occupancy Date, the proceeds will be used to pay off Dunpar (the same as paying off your bank/mortgage).

I don’t understand? What if I get a line of credit on my home?

You can. That’s completely up to you.

This is structured exactly as a line of credit, except no payments and no interest.

The Due Date will be the same as your Occupancy Date on your New Dunpar Home.

My lawyer says he’s never seen this before and has some concerns.

Fair enough. We expect your lawyer hasn’t seen this before.

This is a very generous and rewarding program being offered by Dunpar that is setup to m ake it easy for both YOU, the purchaser, as well as for Dunpar.

It says it is putting a “Charge” on my property. What is a Charge? I don’t know what it is and how it works.

Charge is the same as a Mortgage.  Your bank has a “Charge” on your Home for your mortgage. Dunpar’s is the same with no payments and is interest free.

My lawyer is concerned you may “call” the charge and sell my house if I don’t come up with the money. Is that true?

The terms of the charge will have a Due Date = Occupancy Date of your New Dunpar Home.

There is no way you could default before that date.

You would sell your home before occupying the New Dunpar Home and the deposits would be paid with the proceeds.

What if I don’t sell my home before the Occupancy Date? I want to keep it as an investment.

This program is not meant for investors. It’s meant for people selling their own home and moving into a Dunpar Home.

It is possible to keep the home and occupy the new home, but you would have to come up with the money to pay Dunpar the deposits, and Dunpar will remove the Charge on your home.

What if my New Dunpar Home gets delayed due to construction and not because of me? But the due date of the Charge is the first date?

Dunpar will work with you to extend both the Occupancy Date and Due Date so they are always the same.

My lawyer says “there must be a catch” as this has never been done.

There is no catch.

The H.O.M.E. Program works the same way as a line of credit but with no interest, and no payments. Your lawyer can confirm this in the documents once this transaction is underway.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Market value will be determ ined if the home is appraised, by certified appraiser, or by internal valuation completed by Dunpar Homes

 

This is a limited time opportunity and subject to restrictions and qualifications.

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