Cash Back Mortgages now available in Calgary

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Mortgage and Lending with Arnason Mortgages

We are very pleased to announce that as of March 2013 we are once again able to offer 0 down mortgages / Cash Back mortgages across Alberta through our Credit Union partners. With the recent changes to Zero Down mortgages in Canada this a great option for anyone that has been unable to save for a down payment but has a good credit history.

The cash back mortgage is only available on a 5 year fixed interest term and the interest rate is typically set at the 5 year posted rate for this type of financing. Today’s rate on the 5% cash back product is 5.24%. **

To find out more about this program and see if you qualify please visit:

Calgary Mortgage Broker offers Zero Down Mortgages

Larry Arnason

Calgary's Mortgage Broker

www.larryarnason.com

 

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Calgary Mortgage Broker, Larry Arnason - proudly serving Calgary and the surrounding communities, Airdrie, Lethbridge, Red Deer, and northern Alberta.  You can lern more about Larry at www.larryarnason.com

One of Calgary’s leading mortgage brokers since 2003, Larry's success stems from a strong motivation to help individuals and families achieve their dreams and find their perfect home with the best mortgage options and rates. As a Mortgage Broker Larry works for you, not a bank or specific lender – he is able to provide impartial advice on your mortgage and find the best rate with the best terms and options to suit your unique financial needs whether you are buying a new house, renewing your mortgage, or refinancing.

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zero down mortgages
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Rainer
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Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

Interesting concept, Larry.  It is similar to carrying a 2nd lien in a down payment assistance program.  If I am not confused.. or maybe I am.  We do have programs that allow 3% given as a down payment by a private entity, and that 3% is a 2nd lien at the same interest rate as the 1st lien.  Now, if they stay in the house for 3 yrs or more, that 2nd lien does not have to be paid back if the home is sold.

Apr 03, 2013 02:04 AM #1
Anonymous
Larry Arnason

Hi Dan,

There is only one charge registered on the title. 

Here is how it works,

The lender will give 5% of the mortgage amount to the lawyer at the time of funding and these funds can be used for what ever purpose the borrower wants. In most cases the borrower is unsing the funds for the down payment but if they did have the down payment they could use the funds to pay down credit cards, renovations on the new property, etc...

The lender basicly lends the borrower the money and they insrt a clawback clause into the mortgage. For every year that the mortgage is in place 20% of the amount of the cash back is forgiven so if the home owner sells the property after 3 year for example, they would have to pay back 40% of the cash back amount.  After 5 years the cash back has been repaid, the customer is able to get the discounted mortgage rates available at the time and the 5% given is now equity in their home.

It is not truly a $0.00 down mortgage as the borrower would have to come up with a small amount of the down payment on their own ($500.00 on a $200,000.00 purchase) but it is a great product for people with good credit that have found it hard to save up a down payment. 

There are several lenders that offered this product however due to regulation changes in 2012 the cash back can no longer be used for the downpayment at almost all of the lenders that offer it however here in alberta there is still one lender that will allow it, for now.

 

Apr 03, 2013 02:46 AM #2
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