Zero Down Payment

With excellent credit and stable income, your interest rate will be fully discounted. Our Enhanced Zero-Down Flexible Payment mortgage programs allow a first-time or multiple-time home buyer to purchase a home and own it outright with a standard mortgage at today prices.

Don't fit in this category? Don't Worry. We offer a variety of programs and will work with you to select a mortgage payment plan that works for you. These Programs include:

  • Cashback mortgage to pay closing costs or debt
  • Gifted downpayment
  • RRSP withdrawals

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Can I Get a Mortgage with Zero Downpayment?

Unfortunately, No. There are currently no approved programs in Canada that allow borrowers to secure mortgage financing for 100% of a property’s value. A minimum 5% downpayment is required to purchase a property. These rule changes were brought in by CMHC on Oct 15th 2008.


Strategies to Achieve Zero-Down “Out of Pocket”

If you have zero down payment saved, you still mortgage options available. There is confusion in the market due to recent changes in federal legislation eliminating bank cash back mortgages for zero down payment. Enhanced zero down flexible payment mortgage programs still exist. Bankers may say they don’t – they are available through Kardia Mortgage.

These existing programs allow a first time or multiple time home buyer to purchase a home and own it outright with a standard mortgage at today prices. Prospective home buyers no longer have to sit, wait and watch home prices climb higher. We have the affordable solution for owning a home sooner than expected.


Borrowing Your Down Payment

If you have an excellent credit rating and income, there are lenders who permit you to borrow your down payment. The additional payments on the borrowed amount will need to be included in your qualifying ratios to ensure affordability for you and your budget – you don’t want to end up house-poor!

You can use many different sources to borrow your down payment, and we can assist in all of these, such as:

  • a line of credit
  • credit card
  • personal loan, or
  • family member

The following programs are additional programs available to assist with down payment, paying down debt, etc.


Cash Back Mortgage to Pay Closing Costs or Debt

A cash back mortgage is where a lender provides you with a percentage of the mortgage amount on closing – it can range from 1% to 5% of the mortgage amount.

This is payable to your lawyer on closing and can be used to pay for:

  • minor renovations
  • furniture
  • moving expenses
  • closing costs
  • maybe a nice holiday or honeymoon!

The interest rates are slightly higher than discounted rates and are built into the mortgage though it is often worthwhile or cheaper than borrowing from a credit card.


Gifted Down Payment

A “gifted” down payment is a great option; especially for first time home buyers. A close family member will provide you with a financial gift that makes up your down payment. The close family member might be a very loving parent, grandparent, or sibling among others!

All that is required is for the person who is providing the funds sign a Gift Letter that indicates that the money does not have to be repaid and then provides us with a statement of the gifted funds being deposited into your account.

You will still need to have enough funds for your closing costs from your own savings which typically range from 1% to 1.5% of your purchase price.


RRSP Withdrawal

The Home Buyers Plan allows home buyers to withdraw up to $25,000 PER BUYER, from an RRSP to purchase a home without having to pay tax on the withdrawal. The federal government recently increased the maximum amount to give additional access to your Registered Retirement Savings Plans (RRSP) for home purchases.

Remember, the $25,000 per buyer does not HAVE to be used solely for a downpayment – it can be used for:

  • Closing costs
  • Paying off some debt
  • Moving expenses
  • Furniture
  • Or even a vacation to celebrate!

You qualify if:

  1. You or your spouse have not owned and occupied a home as your principal residence in the preceding 4 years, or
  2. You are buying or building a home for a disabled person who is related to you.

Contact Us

Are you looking to save a little on your mortgage payment? Get in touch and our expert mortgage advisors will help you get on the right track!

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Interested in getting a mortgage? Contact our experienced mortgage advisors, today! We are here to help.

Kardia Mortgage
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