New mortgage scheme unveiled NOW Ir’s “FLIP’ A new mortgage plan, designed to. put home ownership within the reach of more potential purchasers, is described in a recent issue of Hudac National Focus, ... the monthly bullentin§ of the Housing & Urban Development Associa- tion of Canada. . Introduced by Victoria Wood Development Corpora- tion Inc. of Toronto, **FLIP— the Flexible Loan Insurance Program—allows a family to qualify for a more expensive home than they would be able to buy under conven- tional financing methods by making use of the buyer's own money, and monthly payments will be easier to handle. No government sub- sidies or payback plans are involved. Victoria Wood has teamed with the Toronto-Dominion Bank and the Mortgage Insurance Company of “rangements. Canada in launching the new program, which was develop- ed by the FLIP Mortgage Corporation of Newtown, Pennsylvania and has been adopted by state and federal. banks as a method of home financing. Buyers of Victoria Wood homes will now be able to choose between FLIP and conventional mortgage ar- Those who choose FLIP will first have their purchasing power analyzed ‘through a sophi- sticated computer system which considers such factors as present income, ratio of housing expense to income, projected income growth, length of the total payment period, private mortgage insurance, property tax and cash down payment..A grad- uated payment plan is then developed from the analysis via a high-speed computer printout. FUND A portion of the buyer's deposit is used to fund ‘a pledged savings account, with the balance going toward the reduction of the home purchase price. Mini- ' President, mum down payment is 10 per cent and the mortgage term is 25 years. During the first five years principal and interest from the savings account is used to reduce the home owner's monthly mortgage payments which level off at the end of the fifth year. Richard M. Griffith, Vice Marketing & Sales of Victoria Wood, who announced the program, said the FLIP plan “will allow thousands of Canadian families an opportunity to buy their first home or buy a more expensive home rather thar settling for one con- siderably less.” MICC President Reg Ryan, -announcing that his company would ‘be insuring loans made under the FLIP mort- gage plan, said that *“*MICC believes there is room for development of new ideas and techniques in mortgage financing. We — shouldn't always have to rely on the government to be the agent for change. The private sector should play its role in research and development, in the mortgage field as in other areas of business.”’ Commenting, on the new FLIP program, HUDAC Pre- sident Keith Paddick said it is, ‘‘in a sense a private | lending institution’s answer to the CMHC graduated Payment plan, and could tend to appeal to young career people with opportun- ° ities for advancement in their jobs. ‘ “There arg inherent risks in both kinds of program in that they are based on an expectation premise. How- ever, as builders we look at them as other options in the financing field which could enable young families to acquire their homes. at an. earlier point than they would with an equal payment mortgage. We will be keenly awailing the reaction to this latest way of financing a new home,"" he said. INTEREST In the first nine days following the introduction of FLIP, about 1,000 families visited ‘Victoria Wood's six Ontario locations, according to the company, a number of them, second and third time home buyers. Real estate and trust companies in other parts of. Canada were also showing interest and asking form more information on the program. Victoria Wood plans an extensive marketing program for FLIP throughout Canada, and hopes to make = it available in all major housing markets in the next six. to nine months. Newsstand locations Every ‘Saturday mo: ’ the Sunday News Real Estate Showcase will be on over 100 newsstands—includin offices, all Ror Te estate major hotels, shopping~malls, retail outlets in the following areas: _ North and West Vancouver Vancouver Richmond Burnaby Surrey Delta New Westminster Ate MbchicinitneRcadlnpidadbieMaMendashdth aneheccuco¥ it, tat