How to Get an Asset Integrated Mortgage (AIM)
What it is
| At a Glance | |
|---|---|
| Loan Type: | Mortgage |
| Lender: | Bank |
| Secured: | Yes |
An asset integrated mortgage, also referred to as an AIM, is a hybrid mortgage that combines a home loan and a fixed insurance annuity. The borrower invests most of the money in an annuity that is earmarked for the down payment. As long as the annuity investment plus the down payment exceeds 20 percent of the worth of the property, the borrower does not have to pay to insure the mortgage. This is just like a conventional mortgage when the borrower puts more than 20 percent down. The asset integrated mortgage allows consumers to save, diversify their asset base and build a nest egg for retirement.
Who it's for
An asset integrated mortgage is good for homeowners who have difficulty saving money. They pay a higher rate on the amount borrowed than they will earn on the annuity. The gain on the annuity is tax deferred, but it is not tax exempt.
What you need to do to apply
In order to obtain an asset integrated mortgage, interested applicants will need to contact a local lending institution and inquire about the different options and rates available. Personal and financial history, including a credit report, will need to be made available to the lending institution. A property appraisal may also be required.