In today’s economy there any many people that would like to buy a home who could qualify for a mortgage and cover the monthly payments but simply have not been able to save up the minimum 5% down payment required. In the past the Canadian government offered a program for Zero Down Mortgages however due to recent regulation changes that program is no longer available leaving many families thinking they have no options but we have solutions! There are several mortgage programs we offer that can meet the needs of potenial home buyers that need help with a downpayment.
Our special mortgage programs are ideal for:
People with existing assets (investments, property, savings) but cannot access immediate cash.
First time home buyers with no down payment.
New Immigrants to Canada and Students with a co-signer.
People with good credit but limited cash assets.
Flex Down: Our flexible down payment program works lenders that allow you to borrow your down payment. A borrowed down payment for the program can come from a secured line of credit, a personal loan or credit cards. To qualify for this program you must have access to funds you can borrow and the loan repayment will be factored into your debt ratio before approval – you must be able to afford to pay it back in addition to your mortgage payments. The minimum credit score is over 650 to be eligible for this program.
RRSP Mortgage: A potential home owner can withdraw up to $25,000.00 from their RRSP without having to pay taxes on the amount withdrawn provided the funds are used for the down payment on an owner occupied home. The money would have to be returned to the RRSP over a 15 year period. Over the first 3 years nothing is required to be put back however after the first 3 years 1/12 of the amount withdrawn would have to be returned to the RRSP every year for 12 years.
Cash Back: Our Cash Back program offers you the ability to receive a portion of your mortgage amount back in cash. This is ideal for people that have been able to save up some money for their down payment but need help to cover the other costs associated with purchasing a home including closing costs (lawyers, taxes, renovations, etc) that you must have in hand in order to be approved for a traditional mortgage. The interest rate on a Cash Back mortgage is typically slightly higher than regular fixed rate mortgages. You must have a minimum credit score of 650 to qualify for the Cash Back program.
Down Payment Gift: For individuals that have family members who are able to help with the purchase of a home there is another option; we have lenders that will allow you to use a financial gift as your down payment. The person giving you the money will need to sign a gift letter with you saying that you’re not required to pay the money back at any time and that is not a loan – the person who is providing the funds to you must be an immediate family member.
While each of our lenders have their own guidelines most of the options available for home buyers who need help with the down payment require the individual to have a good credit history with a minimum score of 650.
If you need help improving your credit score to qualify for one of these programs we are happy to do a consultation with you and get you started on the path to being approved.
If you have the required 5% down but do not have good credit we also offer some great alternative mortgage financing options that we can access for you – frequently even if the banks have said no!
To find out more about any of the programs listed above please call us at 403-265-5363 or email us anytime at larry@larryarnason.com It is our mission to help all of our clients get the home of their dreams!
* Programs and qualification criteria subject to change based on regulatory policies and lender guidelines
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