What’s Up with Zero Down-payment?

For some, it can make all the difference.

Many Canadians are not aware that zero down is alive and well and offered by a handful of excellent lenders to qualified borrowers. Of course, you have to wonder if zero-down can possibly make good financial sense. The answer is both yes and no.

A zero-down mortgage is not for everyone but for qualified home buyers, a zero-down plan can get them into their homes faster, saving potentially thousands in rent, and providing a jump start on building wealth.

You could be a candidate for a zero-down mortgage if you have excellent income, credit, and the ability to manage your mortgage payment and ongoing housing expenses comfortably within your budget.  Consider that the money currently going to rent could be helping you build home equity right now, and that we continue to be in a period of historically low interest rates.

So how can you get around saving that critical minimum down-payment required to qualify for an insured mortgage? You can borrow the down-payment from a line of credit, personal loan or family member.  With excellent credit and stable income, your interest rate will be fully discounted. The loan payment of course will be used in your qualifying calculation, and your mortgage insurance premium will be higher. You’ll also need to have funds set aside to cover your closing costs.

Want to learn if you qualify to purchase now without waiting, how to build your down-payment faster, or the steps you can take to improve your credit rating so you qualify for a great rate when the time comes? Let’s talk!

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Rasha Ingratta & Mortgage Associates

By Mortgage Intelligence

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