Zero Down
Stop helping your landlord become mortgage free. There are several lenders who will offer the possibility of purchasing your home with zero down.
Financing your 5% Down Payment
Home buyers can purchase their home with as little as 5% down. The 5% down program was initially set up for qualified First Time Home Buyers but since has been made available to a greater range of borrowers, even repeat buyers, providing they meet the program criteria. There are lenders who will finance up to 95% of your purchase and provide cash back of 5%, which you can then use as a down payment.
Borrowing your Down Payment - OKAY
It is possible to borrow your down payment as long as you still are able to meet the lender’s debt servicing guidelines. This has opened up home ownership possibilities to those borrowers with excellent credit history but who have yet saved the required down payment.
All mortgages that are above 80% of the purchase price must be insured with mortgage insurance as regulated by Canada’s Bank Act. The main insurers are CMHC, Genworth Financial and Canada Guaranty. The size of your premium will depend on the loan-to-value ratio borrowed, the larger the down payment, the smaller the premium. The premium for having a down payment that is between 5% and less than 10% is only 2.9%. This insurance premium being charged can be added to the mortgage and paid over time.
The maximum purchase price eligible for this program was at one time restricted. Now, the maximum purchase price for borrowers with 5% down or more is unlimited (subject to individual lender policies).
Call Joanne and make the home of your dreams a reality!