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.