No down payment mortgage

Yes, there are no down payment mortgages. However, as an update...Canada Mortgage and Housing (CMHC), recently announced that as of October 15, 2008, they will no longer be offering zero down mortgages, and 40 year amortizations.

That is a big development, but CMHC is not the only lender in town and the other major lender Genworth Financial and other lenders still offer no down payment mortgages.

When I first became a Realtor in 89 the only option readily available was 75% mortgages.

Therefore, you had to come up with 25% down payment. For example, if you wanted to buy a home for one hundred thousand dollars ($100,000), then the bank would give you a mortgage for Seventy five thousand dollars (75,000) , but you would have to come up with twenty five thousand dollars ($25, 000).

Today things are very different, and you can get a mortgage for as little as 5% down. That sounds great, but using the example above, you would still have to come up with five thousand dollars ($5,000). For many people that is still a major barrier into the housing market.

The example above is quite simple and buyers have to qualify in a number of areas to get any type of mortgage. However, this is the best time in Canadian history, because the rates are low to seek out information relating to mortgages.

For those interested in no longer renting, and moving into the housing market here are a few things to know:

First, you should be employed in your current job for at least a year, and will need to provide a employment letter.

Secondly, you should have excellent credit rating.

Thirdly, you will have to provide your Social Insurance Number.

Finally, you can be self employed, and will have to have your T4 tax assessments available.

It has never been easier to own, so why pay off your landlords’ mortgage when you can begin to build equity for your future?

If this article sounds interesting to you and you would like further information on how to qualify for a no down payment mortgage contact me.