ZERO DOWN/CASH BACK MORTGAGE

Are ready and willing to make that step towards becoming a homeowner and the only thing holding you back is acquiring the dreaded 5% down payment? This requirement may be hindering you from purchasing a home. How wonderful would it be if you could have the ability to purchase a home with zero down?!

Enter the 5% Cashback Program. Essentially the option for a buyer to purchase a home with zero down payment, is back! What does this mean? This program allows you to purchase a home while only coming up with very little upfront cash (you still have to have 1.5% of the purchase price available for closing costs). The lender will pay an amount equal to 5% of the property lending value to the solicitor upon closing, in addition to the mortgage advance, to be used as the your down payment.

Q: But I pay a higher interest rate with this program. Don't I lose more money in the end because of this higher rate? 
A: Based on a mortgage amount of $250,000.00 your monthly payments based on an interest rate of 5.44% (amortized over 30 years) are approximately $1401. If however, you had a 5% down payment and got a traditional mortgage at a 5 year rate of 3.89% (amortized over 30 years) your payments would be approximately $1173. Over the course of your 5 year term you will end up paying approximately $13 680 in extra interest payments. However keep in mind you received $12 500 in FREE money when you first purchased and closed on your mortgage. This means you are able to get into your OWN home, start paying your OWN mortgage, and after 5 years it has only ended up costing you $1180 out of pocket. That is very nominal considering it enabled you to get into a home of your own!!!

Q: Are there any specific credit requirements?
A: Yes, all applicants on the deal must have a credit score above 650. (OAC and subject to full deal review)