GETTING A MORTGAGE LOAN WITH NO DOWN PAYMENT
With interest rates still at historic lows, many young families are asking the question:
How can we get into our own home without a down payment?
The good news is that there are mortgage programs to assist homebuyers in realizing their dream of home ownership without a down payment, provided they have a steady income and a good credit history.
The mechanics of the program is as follows: the lender will provide a cash-back mortgage incentive that is equal to 5% of the purchase price of the home. This 5% cash-back is forwarded to the lawyer acting on the closing and in turn the lawyer will use the cash-back funds as the minimum 5% down payment. The mortgage loan is insured and the insurance premium is added to the mortgage loan amount.
The borrower is required to demonstrate the ability to cover the closing costs, for items such as Legal Fees & Land Transfer Tax, totaling approximately 1.5% of the purchase price.
NOTE: First time buyers are exempt up to $2,000 from the Land Transfer Tax.
For further information on this program call our office today. You' ll be glad you did!
PHONE: 905.637.1416
Toll Free: 1.866.680-2020
mariosita@invis.ca