No Down Payment
Many of the buyers that come to us have a similar problem in that they make good money but they just can't save enough for down payment. If the 5% cash back mortgage is not a product you are interested in for what ever reason, there are still some other options to buying a home sooner. Let us lay out your options when there is no down payment available.
The most common option would be a gifted down payment from an immediate family member. If you are so lucky to have this option it is a great way to go. Qualification is much easier than the zero down mortgage, as the money is considered your own and not borrowed. All the lender needs to see is a signed gift letter and a deposit showing the money going into your account (as well as enough funds for closing costs). Very straight forward and easy.
The second option would be to borrow the 5% when you have no down payment. This option is called a 'flex down' mortgage. The qualification is basically the same as the zero down, other than your income will likely have to be able to debt service a bit more due to the loan payment that this option would include. We do not offer the loans, nor is unsecured money always easy to get but this is definitely an option for those with no down payment.
The third option would be a situation where you are purchasing a family members home and they give you a deal on the house. We would be able to structure the deal to show this savings in price as 'gifted equity'. Obviously this is a bit of a unique situation however you would be surprised how often we see these types of transactions. Again qualification is generally fairly straight forward as the money is treated the same as savings.
As you can see there are alternatives out there for clients with no down payment, let one of our mortgage brokers discuss these purchase options in more detail.
We are Canada's 'Zero Down Mortgage' Specialists
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