If you want to purchase a home, there are usually certain items you must have in place before you can be approved for a mortgage. You will need enough yearly income to ensure you can meet your monthly payments. You need a good credit history. And you need a down payment to put towards a new mortgage loan.
But what if you just can’t seem to save up enough for that 5%, 10% or 20% down payment on a mortgage loan? If you are trying to buy a home worth $350,000, you would need $35,000 put away for a 10% down payment. Even $17,500 for a 5% down payment is a lot of money to have stored away. If your predicament is having the required income to afford monthly payments but not having that initial down payment for a mortgage loan, you can look into a zero down mortgage. Edmonton brokers are available to help you navigate the lending system and possibly get a no down payment mortgage loan approved.
A qualified, professional Edmonton mortgage broker at MyMortgageBroker.com has a history of enabling first time homebuyers qualify for no down payment loans. There is a Canadian government program that will enable you to purchase a house with no money down. First time homebuyers who have access to RRSP loans, a Homebuyers Initiative, can borrow funds tax free for a down payment. This is an investment plan under the Canadian government’s Home Buyers Plan (HBP). You can borrow up to $25,000 tax free from your RRSP. It can be paid back over a fifteen-year period. If you don’t already invest in an RRSP, you may want to begin doing so; after 3 months, you may qualify for the Home Buyer’s Plan.
There is a program known as Flex Down. Lenders offer this program that allow you to borrow a down payment in the form of a personal loan, a line of credit or via credit cards. The repayments on these loans, however, are taken in consideration when figuring how much mortgage you qualify for. This can have an effect on the purchase price of the home you would like to buy, as your qualifications may be less than you originally wanted. You also need to have a credit score of at least 650 for eligibility in the Flex Down program.
Other ways to achieve a zero down payment loan are achievable through the expert advisement of your broker. Your Edmonton broker will teach you a number of strategies to help you get that zero down payment mortgage loan. You will learn ways to save up for a down payment faster if you want to put money down on a mortgage. A gifted down payment is one way to get your funds for a mortgage. Lenders will let you utilize a gifted amount of funds as your down payment. This money must come from a blood relative(s). The family member(s) and you must sign a “gift letter” stating that you are never required to repay the money.
Ask your Edmonton broker at MyMortgageBroker.com for additional techniques that will help you obtain a mortgage loan with little or no money down. Give us a call today at 403-870-2669 and begin your home ownership dream.