No Down Payment No Problem

mortgage down payment kelly wolfe Don’t miss the opportunity in the Okanagan real estate market because you don’t have a Down Payment!

Using a cash back mortgage … here are three options for those with out a down payment…

Lender Option 1: (Exclusive to Lendingmax Mortgage Brokers)

- Example: Purchase price $300,000. Down Payment of 5% = $15,000 Mortgage amount is $$285,000.
- This lender provides cash back based on mortgage amount. In this case $14,250.(5% of $285,000)
- Client only needs to come up with $750 for balance of down payment plus confirmation of closing costs in the amount of 1.5% of purchase price for CMHC/ Genworth rules and to pay property transfer tax, legal fees etc.
- In this scenario client needs to have $5250 available versus $15,000 + $4500 (1.5% of purchase price) for a total of $19,500
- Rates are very competitive and vary depending on the amount of cashback required.

Lender Option 2:

- 5.5% cash back
- Must fund by May 2012
- 5.29% interest rate for 5 years locked in
- Must have good credit and not available for pre-approvals
- Owner occupied only

Lender Option 3:

- Cashback which cannot be used for the down payment but can be used to paydown consumer debt to bring debt service ratios down or to buy furniture. Basically to use as they please. They can even use it buy an RRSP if they want.
- Cashback can range from 2% to 5% and is paid to clients at closing
- Rate is slighly higher than posted

These are options for you to consider when discussing both buying and selling a home. Don’t let clients slip away because they say they don’t have the money. We can help them find it.