No downpayment? No problem!

By
Mortgage and Lending with The Mortgage Centre

I don't mean to sound like an infomercial...but with the upcoming mortgage rule changes on April 19th...I feel this is important to get the word out before this program possibly gets pulled too.

If you have clients without the typical 5%  downpayment saved (they must still have a little something to cover closing costs ie. Lawyer and PPT if applicable) they can still buy a home and get a mortgage for 95%, the bank will put down the 5% for the Buyer!!  The rate they will pay is 4.94% (and not the typical 3.69ish offers available for those with 5% down) on a 5 year closed term.

When you subtract the FREE 5% down from the overall cost of borrowing, it works out to a rate of about 3.90%. BUT...this is a small price to pay to start building equity and solid net worth.

Imagine being able to get your foot in the door in this real estate market! Rates are at historical lows...prices are balanced. There's no better opportunity today!

Who do you know who is still renting? It works out to just under 3.90!) when you consider the FREE MONEY! There's no tricks! 

Who knows when the Finance Minister will change the rules again!  Not every lender offers this promo, it's currently available through FirstLine mortgages (mortgage broker channel...that's my polite way of saying, please call me to take advantage of this!)  

Thanks for reading Vancouver.

Ralna Burridge  604-790-7253

Comments (3)

Brenda Carus
Century 21 Zwygart Real Estate - Monroe, WI

There are still a couple viable 100% financing options available.  Around here, we qualify for Rural Housing which also gives qualified buyers the option of 100% financing.

Feb 23, 2010 08:51 AM
Ralna Burridge
The Mortgage Centre - Vancouver, BC

For rural housing...that's tough to mortgage up here. Thanks for the comment!

Feb 23, 2010 03:00 PM
Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
Trusted For Experience - Respected For Results

Ralna - while I don't recommend 100% financing to many clients there are some who have the ability (income) and the backing (equity) to still do this even with the changes. To me 100% financing is not always about financing the purchased property 100% but rather the purchase amount 100%.

Feb 26, 2010 03:38 AM