0% down mortgages over?

[bullish]

Obviously you can still get a 100% financing, which simply means the real estate situation in Canada is under control and there is no crash here:

suncoast.ca/nodownpayment.htm

[Canadian]

Originally Posted by bullish

Obviously you can still get a 100% financing, which simply means the real estate situation in Canada is under control and there is no crash here:

suncoast.ca/nodownpayment.htm

If you look at the bottom of the link you posted you'll see this:

"This product is currently unavailable."

I wonder why did they stop offering this wonderful 0% down financing? Is it possible that this has something to do with crashing housing prices?

[trent]

Yet another useless post by bullish

[bullish]

OK, I didn't see that they stopped offering 100% mortgage financing, however I'm sure there are still plenty of financial institutions that do.

[Canadian]

Originally Posted by bullish

OK, I didn't see that they stopped offering 100% mortgage financing, however I'm sure there are still plenty of financial institutions that do.

I challenge you to show me even one Canadian financial institution that will be willing to give you 100% mortgage financing. I won't be holding my breath though...

[trent]

Originally Posted by Canadian

I challenge you to show me even one Canadian financial institution that will be willing to give you 100% mortgage financing. I won't be holding my breath though...

Well he isn't replying, is he? A big surprise this is

[Canadian]

Of course he isn't replying. It's easy to talk without checking your facts.

[bullish]

Originally Posted by Canadian

Of course he isn't replying. It's easy to talk without checking your facts.

I wasn't replying, because I simply forgot about this thread. However I'm sure there'll be plenty of 0% down mortgage offers once the real estate prices start to rise rapidly again.

[welshboy]

CMHC and Genworth have taken the 100% financing away which allowed borrowers to purchase a home with no down payment with FIs best available rates. Borrowers had to have a beacon score of at least 680 and if joint applicants then both had to have over 680. There was also another option for no down payment mortgages called the cash back which is a 5% cash rebate from the lender which can be used for the down payment. The FI will charge the borrower the posted rate for the mortgage and the borrowers have to have a beacon score of 650 and joint applicants can average scores to be over 1300.

if the borrower breaks the mortgage they have to pay a penalty and also the lender will claw back some of the cash back as well. So the cost of breaking the mortgage can be really expensive.

So really no down payment mortgages have not gone away they have just become more expensive.

[NoDebtGuy]

Originally Posted by welshboy

CMHC and Genworth have taken the 100% financing away which allowed borrowers to purchase a home with no down payment with FIs best available rates. Borrowers had to have a beacon score of at least 680 and if joint applicants then both had to have over 680. There was also another option for no down payment mortgages called the cash back which is a 5% cash rebate from the lender which can be used for the down payment. The FI will charge the borrower the posted rate for the mortgage and the borrowers have to have a beacon score of 650 and joint applicants can average scores to be over 1300.

if the borrower breaks the mortgage they have to pay a penalty and also the lender will claw back some of the cash back as well. So the cost of breaking the mortgage can be really expensive.

So really no down payment mortgages have not gone away they have just become more expensive.

In reality the only difference between the cash back programs and the zero down programs is the claw back if you have to break the mortgage. They may have become marginally more expensive depending on what you can negotiate for a rate.