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The Facts
about Zero Down Payment Mortgages There's
been a significant amount of hype in the media lately about zero
down payment mortgages. Some realtors and mortgage brokers
have been hawking zero down payment mortgages in an effort to boost
their business. Do they really exist? How does one qualify?
What is the cost/benefit of using this product? Yes,
zero down payment mortgages are available. There is one major
financial institution that is exploiting this niche. The
qualification criteria are more stringent compared with a CMHC or GE
insured mortgage. If you qualify for this type of financing,
you'd most likely qualify for a CMHC/GE insured mortgage. Furthermore,
you can't get a pre-approval for this type of mortgage. You
will need to include in your offer to purchase a clause stating that
the offer is subject to obtaining satisfactory financing. As
to type of property, it must be in an urban or suburban area.
Condos are not accepted.
Lastly,
lets consider the cost. As with any type of financing, there
are costs to be borne by the borrower. Click on this link to
see a sample calculation showing the costs of a hypothetical
scenario.
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