Free Down Payment Mortgages
If you do not have a down payment but have excellent credit, you may qualify for a purchase
with zero down payment.
Down payment:
The bank will advance 5% of the property lending value to the
solicitor on the funding date, in addition to the mortgage advance.
Mortgage insurance premium: 2.90%
Eligible properties
-
New (completion only) or existing properties
-
Purchase transactions, single family unit
and duplexes
-
Owner occupied single family unit and
duplexes
-
Type A properties under the bank's secondary
home policy
Maximum loan-to-Value Ratio
Borrower qualifications
-
Applicants must meet the bank and CMHC and /
or Genworth lending and credit criteria
-
Maximum number of borrowers on each
application is two
-
Third-party borrowers and non-occupying
gaurantors / co-borrowers are not eligible
-
Minimum
credit report score of 680
Equity requirements
-
Borrowers must have, from their own
resources, liquid assets of 1.5% of the purchase price to cover closing
costs (1% for Genworth insured in Alberta only). These funds should be
in place at time of application approval, and cannot be from employer
relocation / benefit programs, provincial grants, gifts etc
-
The 5% down payment and amount cannot be
included as part of the applicants assets on the application
GDS /TDS Ratio
-
CMHC Insured: GDSR N/A,
TDSR 44%
-
Genworth Insured: GDSR 35%,
TDSR 42%
Preapprovals:
Payment frequencies
Prepayment privileges
-
15% + 15% prepayment
-
Match a payment option
Payout penalties
-
Standard payout terms apply
-
Free down payment clawback applies if paid
out before expiration of term or if mortgage is assumed, paid out or
reduced, by an amount in excess allowable each year under the bank's
standard prepayment options, transferred, rate blended, or renewed prior
to the expiry of the original term
Exclusions
-
Fixed rate terms of less than 5 years
-
Purchase transactions involving multiple
advances (including purchase plus improvements) or secondary financing
-
Properties containing 3 or more units
-
Non-purchase transactions (refinance or
switches)
-
Self employed program
-
New to Canada program
-
Secondary home program
-
Rental property program

