DND Mortgage
“A DND Mortgage or Military Relocation Loan Program Provides Added Support To Military Personnel Requiring Personal Mortgage Financing”
A DND Mortgage or Department of National Defense mortgage program is provided to a member of the Canadian Armed forces in order to accommodate their personal housing needs.
A DND home mortgage, also referred to as a military relocation loan, is provided through traditional lenders, but with added mortgage benefits provided and funded by the Canadian Military.
Who Qualifies For A DND Mortgage?
For the most part, any military personnel required to provide their own personal housing is entitled to the various benefits available under this military relocation loan program for a residential home mortgage they may require to purchase a home.
“What Are The Key Benefits Of A
Military Relocation Loan?”
The purpose of the program, similar to certain corporate programs out there, is to help support the needs of the individuals that are not only required to provide their own housing, but may be asked to move to different locations from time to time.
As an example, when a relocation occurs, the existing home will likely need to be sold. This can trigger prepayment penalties on a mortgage, which can be covered all or in part by the program. Travel and moving costs will also be incurred, and qualifying expenses covered. And when relocating to an area where the housing market has less supply and/or the general cost of housing is higher than the individual can afford, a DND mortgage program will assist the individual in financing a qualifying property.
Another feature of the program that you may need to take advantage of is assistance with bridge financing. Sometimes you will not have your existing home sold before the closing takes place on the new home you’re trying to acquire. In these situations, bridge financing may be required and assistance for relocation bridge loans is also available under the program.
In addition, another benefit from the program is that once a qualifying member qualifies for a mortgage, there can be certain interest rate reductions or concessions provided in addition to the mortgage offering from the conventional lender who will actually fund the mortgage.
“What’s The Best Way To Start The Process?”
If you’re a member of the Canadian Armed Forces that would like to apply for a DND mortgage, the first step would be to apply to a bank or institutional mortgage lender in the same manner that a civilian would and get a 120 interest rate hold in place.
There is a fair amount of administrative details to go over in the DND mortgage program in order to acquire the various benefits available to you. But getting the interest rate hold first is a good first step as it protects you against interest rate increases that may occur while you’re completing the DND program requirements.
In order to get a rate hold at participating mortgage lender and complete the DND mortgage process where by you extract all the potential benefits that the program has to offer, you would be well advised to work with an experienced mortgage broker who has direct access to the proper lending sources and has experience placing DND mortgages for other individuals.