You may be unaware that 100% financing or a “Zero down” mortgage still exists.

On October 15, 2008 the rules passed by Canada’s finance minister took effect, and the existing no money down program was cancelled. However, despite being cancelled. There IS another way…

This program is called “flex down” or “free downpayment mortgage” and here is how it works:

1. You must take a posted 5 year rate & term instead of a discounted rate.

2. The cash is given to your lawyer/Notary at closing allowing you to put it as the 5% down payment.

3. You still must show cash assets of 1.5% of the purchase price of the home to prove you can afford closing costs, such as legal plus property purchase transfer tax, if applicable.

4. You will still need some sort of a deposit! Make sure you let your realtor know that you’re using the “No Down” program so that they can negotiate the lowest possible deposit. Remember, you get this deposit BACK at closing, so you may also consider borrowing it form a famil member of friend.

5. You will pay a slightly higher CMHC fees. CMHC has a sliding scale. The less you put down, the higher the fee

As much as you receive a 5 year posted rate, which as of today is 5.79%, you get your 5% down payment FREE
The bank recoups its 5% gift of money that it gave to you over the 5 year term.

Because you’re NOT putting any of your own money down, you must have good credit. In fact, your credit MUST be at least 680 and you must have sufficient income on paper to qualify for the mortgage amount requested

If you don’t have decent credit YET…call me for my free e-Book

“What your Bank won’t tell you about credit”

I welcome your comments below : )

Mark Fidgett | 604-273-2002

“Your Personal Mortgage Consultant….For Life!”

PS – Please Don’t Keep Me a Secret
A REFERRAL is when you INTRODUCE someone you care about to someone you TRUST!

T 604.273.2002 | F 604.522.2072

An independent Mortgage Specialist associated with the Verico Mortgage Network.