First Mortgages

100% Financing Loans

Finding a mortgage is no easy task, with an abundance of options and services available which one do you choose?

Did you know that there are companies in Canada that allow you to finance a home for 100% of it’s current property value? More so with no strings attached or no money down! Typically in scenarios like these the only costs required to purchase are an appraisal and legal fees.

Sadly far to many first time home buyers are unaware of this and don’t realize that they are closer to home ownership then one might think. Seeing no money down and 100% financing can be a big difference in whether you actually end up buying the home of your dreams or only wishing that you could.

Fortunately in the world of home buying there is more than one way to secure a home loan with 100% financing. You’ve probably heard that most conventional loans require some sort of money down but little to many realize that there are no money down loans that can become a first mortgage or a combination of a first and second.

The advantages of these are quite simple actually, the first being you don’t need any money for a down payment nor do you need to liquidate any stocks or other investments. The borrower may actually want to end up financing as much as possible for a tax deduction purpose.

Here a simple but quick breakdown on how a borrower could get approved for a 100% finance loan:

1. First and foremost you must have solid credit. This means you can’t have anything worse then a one month late payment on any credit cards you own in the last two years. This also includes no late payments on any current loans or mortgages you may have. Lastly you can’t have any bankruptcy declared in the last seven years nor any orderly debt payment in two years in the same field of work. You have to have a minimum of six months with a new or current company.

By reading this you may have heard that the zero down mortgage in Canada has been abolished as an option for any first time home buyers. When still offered the product provided a viable option for those who could afford the monthly payment but we’re unable to come up with the minimum 5% down payment that came with it. While GM Mortgages doesn’t provide an in house solution to this problem we are still capable of finding ways to help purchase a home without using any of your own money. The simple solution is to borrow money in the form of a line of credit or a loan. This would be a very similar idea to using that 5% cash back mortgage from zero down but you don’t have to settle for the banks mortgage rate, you get a full discounted one.

Getting fully secured loans is not easy as a lot of it depends on your credit and stability. Other options to solve this are using your RRSPs (or RRSP loan) which can provide a much easier solution then the 100% financing loan. After 90 days you end up using these funds as your down payment for your home loan. This would be very similar to the 5% cash back but it allows you, the borrower, to get into the home owners market quickly rather then waiting for that initial down payment.

If you use the 100% loan financing you should keep in mind that the down payment loan and the mortgage should not be from the same institution. If you still have questions on this please contact us today!