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No down payment mortgage: Is it still possible?


Posted May 12, 2014 by SaraBro
A recent change in rules by regulators looks like that Canadians can no longer buy homes with no down payment mortgage. Despite these changes, buyers however can still get their dream home with little cash on hand.
 

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Pressnews.biz (Press Release) May 12, 2014 -- A recent change in rules by regulators looks like that Canadians can no longer buy homes with no down payment mortgage. Despite these changes, buyers however can still get their dream home with little cash on hand. Although regulators barred the banks from offering cash back of 5% for down payments you still can buy a property and that can be possible with payment from a line of credit, private loans or even with the use of a credit card. A good Vancouver mortgage broker would help you with all the things that you may need for owning your property.

If you have a good credit score you can get your property even without a no down payment mortgage. Your credit card will be your rescuer in this case. But, not many would be able to do this because the interest rate can be as high as 20%. At a time when our average national home price has reached $356,687-mark it is found that one-fourth of rent paying individuals have less than $5,000 in their savings. This lack of savings restricts them to make a down payment for purchasing a property. Therefore, one should contact someone who has better knowledge in money matters and a Vancouver mortgage broker would surely qualify for this.

As the Vancouver mortgage broker would point out that till very recently in many provinces where lenders were not federally regulated buyers could still had a no down payment mortgage where the lenders offered the 5% cash-back. They gave you the 5% cash that you used for your down payment and you had only to manage your closing costs that included the land transfer tax, legal and inspection fees etc. However, the interest rate in this case was well above the normal mortgage rates. Now, with recent changes you have limited options and your broker will be of help to plan your down payment options.

Another alternative that is closely equivalent to no down payment mortgage is using a gifted down payment option. If you have a relative who gifts you the money you need for the down payment you are through. The donors can be parents, grandparents or sibling. Both the recipient of the gift and the person paying the gift must confirm in writing that the gifted fund is non-repayable. Talk to your Vancouver mortgage broker if you have the chance of managing the down payment in this way.

In some provinces and municipalities one can avail special assistance grants for making their down payment and this helps them in avoiding no down payment mortgage. These programmes are however for people with low or moderate income. Even though they run high risks they are allowed to buy a home with zero down payment. There are some projects where the developers provide 90% of the project cost and 10% is covered by them with a second mortgage at no interest and no payment. Get in touch with your Vancouver mortgage broker to know more about these options and purchase your property soon.
Vancouver mortgage broker http://bc-mortgage-broker.ca/vancouver-mortgage-broker can help you with no down payment mortgage http://bc-mortgage-broker.ca/tips-best-mortgage-rates when you have less cash in hand.
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Contact Email : brow...@yahoo.com
Issued By : sara brown
Country : United Kingdom
Categories : Finance
Tags : Vancouver mortgage broker, no down payment mortgage
Last Updated : May 12, 2014

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