No Money Down Mortgages in Canada

home mortgage financing

Although a no money down mortgage (0% down payment) is no longer available directly through CMHC, there are still ways to obtain a CMHC insured mortgage with no money down. Here are some of the options available. These no money down mortgage stratagies are not available to applicants with a poor credit history. A minimum beacon score of 650 or higher will be required to qualify. Applicants with bad credit will require a minimum of 15% down.

5% down mortgage with a 5% cash back component

5% cash back mortgages are available from several lenders and will usually carry a premium charge of 1.5% or higher over traditional mortgages.

CMHC permits down payments to come from borrowed sources (credit cards, line of credit, family) provided that this is disclosed to the lender.

If you have good credit but are short the down payment, home buyers can borrow their 5% down payment from line of credit or credit cards. Borrowing the down payment will increase your debt load. This means you must be able to service the mortgage payment, property taxes, all existing debt obligations and the minimum payment required on borrowed down payment to qualify.

The borrowed money must be in a bank account or savings vehicle for 3 months prior to purchase.

For more information on a no money down mortgage in Canada, apply online.