Vijenthiran Vijayaratnam
AMP # M08002899
This type of mortgage is designed for the applicant who does not have the capacity to put money down on a purchase of a home immediately. As a home buyer, by gaining ownership, you are now gaining equity in what is most likely your largest and most lucrative investment. There are definite positives in ownership.

There are three ways to purchase a home in Ontario without a traditional down payment. Homebuyers will still have to come up with approximately 1.5% of the purchase price for closing costs in each of the following no down payment scenarios:

100% Financing - This allows homebuyers with excellent credit to finance the entire purchase price of the home without any requirement for a down payment. The major drawback to this program is that it carries a fairly high interest rate.

5% cash back mortgage - It is also possible to get a mortgage which will give you a 5% cash back on closing. This 5% can then be used for the down payment eliminating the need for you to come up with the 5% yourself. This can be a great program for those who have their money tied up in other investments, but still want to take advantage of the benefits that come with home ownership. The mortgage rate for this product is usually about 1.5-2% higher than the current markets lowest mortgage rate.

Borrowed down payment - Homebuyers with excellent credit are now able to borrow their down payment from a line of credit, or credit card. As long as the monthly payment on the borrowed funds can be verified. For example, as mortgage lenders are unable to verify money borrowed from friends or family members, these borrowed sources are not accepted. The down payment can however be gifted from an immediate family member and all that is required is they fill out a form, or type up a letter stating that the money is a gift and does not need to be paid back.
585 Middlefield Road, Suite 16.
Toronto, ON. M1V 4Y5
Tel: 416.732.7784
Residential Mortgage | Commercial Mortgage | Business Loan | Refinance | Calculate Payments | Loan Applications | Rates | Loan Type | Articles
Designed By