No down payment mortgages in Saskatoon
The biggest reason most people are renting, is not because they cannot approve it is because they do not have the ability to save the minimum down payment. No downpayment mortgages are no longer available exactly in Canada. Every mortgage requires a down payment, it’s a fact in Canada. For homes worth $500,000.00 or less you need a minimum of 5% down. But are there ways to get a no down payment mortgage? Check out our rent versus buy calculator here!
While zero down mortgages are banned in Canada since 2008 there are options for clients who want to get a mortgage but don’t have the cash for it yet.
Options for Zero Down
- Borrowed down – there are still some lenders who allow us to borrow the down payment. This can be off an unsecured line of credit or a loan. An applicant must have a strong credit history (680+ FICO score) to approve for the borrowed down program. On top of that the borrowed down is put into the debt service ratios, which reduces the amount you can buy.
- Bank of mom and dad – in Canada an immediate family member can gift the down payment. This must be a true non repayable gift, but mom/dad, brother/sister, grandma/grandpa can, and a lot of the time do help people get into their first homes.
Borrowed down is a good opportunity for strong borrowers who are not looking to purchase at the top of their budget. Most of the time the mortgage along with the new loan have payments less than current rental prices. Zero down mortgages are definitely not for everyone. If you’d like to find out if you qualify for borrowed down and if you want to see if it is the right fit for you, call me today or contact me here!