Zero Down - Cash Back or Flex Down?

Have you seen 'cash back' mortgages with zero down payment funded on closing? Yes it is available at posted rate (not fully discounted rate). How about considering 'flex down' mortgage and get the best rate possible!? It saves you money while keeping our down payement 'zero' out of pocket - reason being - flex down mortgage still gives you the best rate possible vs. cash back mortgage adds the cost of money on the 'rate' itself. Make sure you compare the two options.

Here is how it works. With the 'flex down' program, the down payment can come from other sources such as personal line of credit, which only has 'interest only' payment. Also, with 95% LTV at 2.75% premium, we are only paying a bit higher at 2.90% in order to do 'flex down' mortgage program.

For more information on 'flex down mortgage', click here.

Zero Down Strategy (Residential Property) Canada

100% Financing is no longer available through CMHC, Genworth or AIG. However, you can still do 100% financing using the follow methods:

1. CMHC
 insured mortgages will
 allow 
5% 
down
payment
 to 
come 
from
 Non
-traditional 
sources:

a. Gift
 from 
family 
member

b. Borrowed
 funds
–
LOC,
loan,
but 
payments 
must 
be 
included
in 
TDS 
calculation

c. 5% 
Cash
back
 from 
Lender
–
Currently
 the re
are
 only 
two
 lenders
who
 allow
a
 lender 
cash
 back
 to 
be
 used 
as 
down
payment.

Remember
the
rates
will
be
posted rate,
not
discounted.


2. Use a B lender (non-traditioanal banks) – much higher rate but allow 100% LTV
Purchase or Refinance. Client must be an employed individual using reported income fully debt serviced, credit >640 or higher.