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Purchasing a home – No Down payment?

February 13th, 2014 Leave a comment Go to comments

DESMLogo

You may still be able to buy your first home using 5% cash back, however is it worth your while?

If you looking to purchase without a down payment we do not do 100% financing however we do provide you with a 5% cash back to be used for the down payment – so your mortgage equals 95% of purchase price, I will show you the calculation hereunder.  What we are looking for is you folks who have good credit scores, over 650, been working for the same company for more than 2 years, and are not carrying too much credit card debt.  If this is you it may by worthwhile to Apply Online!

You may become a home owner sooner than later!

So this is how it works:

Purchase price  $200,000

5% cash back    $  10,000

Base mortgage $190,000

Plus

CMHC insurance premium $ 5,225

Total mortgage $195,225

Payment for next 5 years would be:  $ 1,118.83 based upon a 25 year amortization.

Payment above on approved credit and as at February 7th, 2014.

What are you paying in rents right now, how long will it take for you to save your own down payment.

FYI – if you had your own 5%, whether you saved it, or had it gifted, the payment would be $ 956.43, so the difference over 5 years equals $162.40 per month, times 60 months – $9,744.

Shh…. Don’t tell the lender they are not charging you interest on these funds!

IMPORTANT:  You need to have closing costs in cash when purchasing a home.  ie:   lawyer fees, land transfer tax – you should budget 2% of purchase price.

If you would like to schedule an appointment please contact me on:  905.336.5997 or toll-free 1.866.824.8057 or email me:  complete form.  Or Apply Online

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