Question:

Hi,

I am looking for ways to come up with a down payment. I know that I could use RRSP's and even borrow to max my RRSP's to 20K. Is there any other way to get money for a down payment. It is so difficult with the high cost of rent and daily living to come up with a proper down payment. Are there institutions out there that will lend the down payment?

Thanks,
Yvette

Answer:

Yvette,
100% mortgage financing is available but there are qualifications that you will have to meet. This type of financing is available to people who have a very good credit history, positive net worth, good employment and good debt service ratios but have not been able to save enough for a down payment. The lender will provide 95% financing at posted rates and give you 5% cash back on closing for your down payment.
To qualify, you will have to show 1.5% of the purchase price available to you to cover a portion of the normal closing costs.
Cheers,
John Lozinski

Answered By: John Lozinski

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