$0 Down Mortgages - Zero Down Mortgages

Real Estate Sales Representative with Robert W May - Lethbridge Real Estate

$0 Down Mortgages


Ever hear of a mortgage that you could get with $0 downpayment?  Well they exist.  You can effectively buy a home with ZERO downpayment!


Back before the major economic collapse of the US real estate market they were much more commonly available, but the turmoil in the market make lenders scared to offer this product for the past while.  However, as Canada appears to be a bit stronger economically than the rest of the world, the zero down mortages are once again being marketed to consumers.

What exactly is a $0 down mortgage?

This is a mortgage that includes in it a 'cashback' to the borrower that they can then use to pay for their closing costs and their downpayment funds.

Are they a scam?

No, not in the shady sense of the word.  They are not illegal, unethical, or anything of the sort.  They are however not always the best 'deal' for the consumer.


Right now I have available a mortgage product which will give the borrower/home buyer back 5.5% of the purchase price.  This is enough money to pay for a 5% downpayment and also pay their legal costs to purchase a home.  The interest rate on this mortgage is currently 5.69% (it changes daily), which is more than if you had the 5% downpayment funds saved on your own.  However there are a few cases where taking this cashback mortgage may be a financial benefit to you.

How do I get one of these?

The qualifying for these cashback mortgages is slightly harder than a regular mortgage product.  The lenders definetly want a 2 to 3 year solid employment history, as well as a reasonable good credit score and a history of good credit repayment.  These mortgages are not for everyone, and I strongly recommend that if possible every client saves up 5% down and purchases that way instead, but not every client is able to do so and not every real estate purchase opportunity fits that mold.


If you want more information on purchasing real estate with no money down and want to know the truth about the mortgage options and requirements, get in touch with me.  This is one of the most misunderstood and over marketed aspects of the real estate industry, yet does exist and is definitely not the right mortgage for everyone.

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lethbridge real estate

lethbridge realtor

Robert W May is a Real Estate Broker in Lethbridge Alberta, having now been in the industry for over 23 years. . He was also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta for the past 10 years.  He is an industry leader always willing to help train and educate others in how to improve their business models for financial and personal benefit.




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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I thought the 0 down was the problem that got us all into the mess we are in.

Aug 13, 2010 07:01 PM #1
Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

In some markets it definitely was Tim, but around here our home prices are back on track and solid.  We did have a period of time when they declined, but they have fully recovered now and although we do have too much inventory still the prices are strong here.

Aug 13, 2010 07:05 PM #2
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Robert May

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