No Money Down Mortgages in Ontario

No Down Payment? No Problem!
 

In Canada a mortgage is considered to be non-conventional or non-conforming if the buyer does not put down at least 25%.  For many first time home buyers, 25% down represents thousands of dollars and many people do not have the luxury of having that much money in savings before purchasing a home. 

We work with lenders that may be willing to loan up to 100% of the value of your new home with a few requirements:

• Your credit history must be good, with a credit score above 600 and 3 years of history on your credit report.
• You must have verifiable and stable income and employment for at least the past 2 years.
• There must not be any late payments reported on your credit report for at least 12 months.
• The mortgage principal, interest, property taxes, heating and condominium fees (if applicable) should not exceed 30% of your gross monthly income.
• Your housing costs and any other debts (ie. Car loans, credit card or student loan payments) must not exceed 45% of your gross income.
• The property must be close to a major urban centre and must be completed.
• If you have had a past bankruptcy, it must be at least 2 years since being discharged.  It is also important to have re-established your credit.

100% financing is what is considered a "high-ratio" mortgage because you essentially do not have any equity in the home.  In order to offset this, you will be charged a fee and insurance fee from either CMHC, GE Capital or directly from the lender.

Keep in mind that with any property purchase, you will be expected to have approximately 1.5% of the value of the property in cash to be able to pay for closing costs (ie. Lawyer fees etc.)