No downpayment :: is it still possible to buy a house?

If you have been contemplating the purchase of a home but you just cannot pull together a 5% downpayment, there is good news for you.   I have a lender offering a program called a CASH-BACK mortgage.   You may be saying, so what is a cash-back mortgage anyway?   If, for example, you wish to purchase a home for $300,000.    5% of $300,000 is $15,000.   On your closing date, the lender would advance you the loan amount PLUS the $15,000.  The $15,000 would then be used to make up the required 5% downpayment. 

Here are some highlights of the cash-back program:

• the mortgage rate for the cash-back offer is 5.55%.
• the maximum cash-back amount that you may get is $15,000.  In other words, you cannot use this program to purchase a home that is greater than $300,000.
• you can borrow your closing costs, if you do not have your closing costs saved now.
• you must have a credit score of 650 points or higher.
  
• you cannot qualify for this cash-back program if you have had a bankruptcy in your past.
• the cash-back program is only allowed for purchases of a home that is your primary residence, that is, rentals cannot be considered under this program.

This blog was written by Elizabeth Blair, a Licensed Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario.

Elizabeth services mortgage clients in Mississauga and all over the Greater Toronto area.  You can contact Elizabeth directly by phone at (905) 510-5785

by email at eblair@mortgageedge.caor you visit her website at:    www.missmortgage.ca 
Elizabeth is licensed with the Financial Services Commission of Ontario and is also a Member of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca 
Lic # M08005880
Brokerage Lic # 10680
Head office is located at:  15 Wertheim Court, Suite 210, Richmond Hill, Ontario. Canada

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