No Down Payment, No Problem!
The Canadian government came out with stricter lending rules, requiring borrowers to have a minimum of 5% down to purchase a house. However, there are still lenders that will provide "cash back" or "Free down payment" options.
With the Free Down payment option, the lender will advance a down payment equal to 5% of the property lending value to the lawyer at the time of closing.
Qualifying criteria:
- beacon score over 680
- Must be in the same line of work for 2 years or 6 months at new company
- Rate will be at the posted rate
- Must be owner occupied
- 5-7 years only
If you sell, refinance, or have it assumed, you will be required to pay a portion or all of the cash back to the lender.
