100% Residential Mortgage Financing is Still Available To Canadian Home Owners
“If You’re Trying To Secure 100% Financing For a Residential Home Purchase, Give Me A Call To See If You Qualify For The Available Programs.”
With all the recent changes in mortgage financing programs offered by different lenders, there still is a way to get 100% financing at decent interest rates.
The solution is going to require qualifying for the mortgage insurance offered through the Canada Mortgage and Housing Insurance Corporation (CMHC).
For one or two residential property units, a 5% down payment is required to qualify for mortgage insurance. For three to four unit buildings, the down payment goes up to 10%.
The key to 100% financing is where to get the down payment.
CMHC actually offers three alternatives for coming up with a down payment that doesn’t come out of your own cash resources.
The first option is to receive a one time gift from an immediate family member that is not required to be repaid.
The second option is to finance the mortgage down payment through a lender cash back payment whereby the overall financing commitment is greater than what is required to purchase the property and the excess is used to fund the down payment (not very many lenders will consider this approach however).
The third option, which many people don’t realize, is the use of borrowed funds for the down payment. This can come from any other source, but the repayment requirements of the down payment debt will need to be included in the repayment qualification for the residential mortgage application.
Also remember that to qualify for an insured mortgage, your credit is going to need to be good and your income high enough to cover the repayment requirements.
There aren’t any B lender or sub debt options right now in Canada that provide a 100% financing option at the present time, so the only way to get it done is through an insured mortgage program.
To better understand how any of the above scenarios may work for your situation, I suggest that you give me a call and we’ll work through the various options together and figure out what the best course of action would be for your needs.
Click Here To Speak To Mortgage Broker Joe Walsh.
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