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We Even Get You The Cash To Repay The Loan Right After You Move Into Your New Home

“Can I get a mortgage with no down payment?”

If you have good income and credit, you probably qualify to get a down payment loan. This is the closest you can get to a “No Money Down Mortgage” in Canada.  [Realtors Click Here]

Fill out the brief survey to learn the pros and cons of all your home buying options, including down payment assistance. If you’ve been looking for a no down payment mortgage, this is the solution you’ve been waiting for.

You can’t actually buy a house with no money down in Canada at a Federally regulated bank – our program acts “like” a zero down mortgage, by lending you up to the full 5% down payment you need. We also help you get the cash to repay the loan as soon as you move into your new home.

How do I qualify?
One of the primary factors is an EquiFax beacon score of 680 or higher. The other two most important factors are your income and how much room your budget has for a mortgage payment every month. The amount of mortgage you can afford (which is based on government-imposed limitations, not on what you “think” you can afford) will then determine your maximum home price.
I don't want to have a loan in addition to my mortgage! How do I avoid that?
We’ll help you use cash-back mortgage funds so that you can pay it off immediately.

If your DPL is from a private investor, you should repay it within a few days after moving into your home, as agreed. If your DPL is from a bank, you can accelerate your repayment if you want to. Most of our deals involve cash-back mortgages, which give you 2-5% of the home price after close – a perfect source of funds to repay your loan quickly.

Does the CMHC Forbid 100% Mortgage Financing?
Yes, the CMHC forbids no money down mortgages at federally regulated banks in Canada. In 2008 CMHC banned 100% financing and in 2012 they banned cash-back down payments (where the buyer did not actually have to make any down payment).

We are helping you get the minimum 5% down payment you need, through referral to a bank loan or private lender, so that you get the 5% down payment in your bank account weeks prior to the mortgage start date, which banks require.

Most of our clients take advantage of our preferred lender’s (a top-5 bank) cash-back mortgage program to repay the down payment loan immediately.

What about the Cash-Back Mortgage programs from the big banks?
CMHC requires you to come up with the down payment PRIOR to the mortgage. The bank ads CANNOT claim future cash-back funds as your down payment now. They’re not actually advertising “Cash-Back Down Payment Mortgages”.
Why does my dumb brother-in-law say that people without a down payment shouldn't buy a house?
Your brother-in-law is not a deep thinker, just an opinionated guy who hasn’t investigated the issue or put a lot of thought into it. The fact is that most home owners never saved money for their down payment. They inherited property, switched equity from one house to another, or got most or all of their down payment from family, or a windfall.
Who am I borrowing my down payment from? What's the interest rate?
You’ll be borrowing your down payment either from a top-5 bank (as a 2 to 5 year loan with a rate of 5.5% to 14.5% APR), or from a private investor who will charge you a Lending Administration Fee and expect you to repay the loan quickly from your cash-back mortgage funds. If you borrow privately and don’t repay within a few days, the interest rate will be high: almost 5% per month APR. So repay it immediately, like you agreed to!
What if my credit score and history aren't good enough to qualify for a mortgage?
In that case, you should look into Rent-To-Own homes at our sister site RTO Partners for a 2-4 year plan that fixes your credit and forces you to build up your down payment so you can become an owner.
Can I connect to you guys on Facebook or Google+ so that I can contact you in future?
What does CMHC say about borrowing my down payment?
To quote CMHC … “For eligible borrowers, additional sources of down payment, such as lender incentives and borrowed funds, are also permitted. Non-traditional sources of down payment include: Any source that is arm’s length to (and not tied to) the purchase or sale of the property, such as …

borrowed funds,

gifts from immediate family,

– 100% sweat equity,”

“Arm’s length” is a provision that prevents monkey business like the seller lending the down payment to the buyer, then overcharging the buyer for the house. When we arrange a DPL for you, it’ll be arm’s length.

Why didn't my realtor or mortgage broker tell me about down payment loans?
Many realtors don’t know about Down Payment Loans (they are unfamiliar with specific aspects of CMHC’s rules). They may still think that you have to get your down payment by saving it, or getting a gifted down payment from family. As for your broker, they might work for a bank that is not using CMHC’s specific DPL provisions, or the broker has no idea how a private down payment loan works because they’re accustomed to processing every aspect of all deals strictly through their own financial institution.
I don't like surprises. What other costs am I going to have, and when?
Closing costs usually amount to about 1.5% of the house’s price. You’ll need to save that yourself. It goes towards your lawyer, land transfer tax, and some smaller items. Save up 2% just to be safe. In some cases you may be able to get a refund on your land transfer tax (Yayyy!).

Important Annual Percent Rate Info:

We are not a lender. Your down payment lender may be SEPARATE from your mortgage lender, and can help you determine APR for your specific loan. If your down payment loan is from a private lender, it is intended to be repaid within 15 days of purchasing your home, likely using cash-back mortgage funds. If your down payment loan is from a top bank, it will likely be a 2-5 year loan. The APR of loans offered by a top bank may range from 5.5% to 14.5%. The APR on loans from private lenders may range between 40% & 59% (depending on lender and terms), inclusive of any late fees and the initial loan fee.

What Happens if You Can’t (or Don’t) Repay: If you do not pay your loan according to the loan terms, your lender may:

  • Offer to renew, extend or refinance. Renewals may be automatic and may incur additional fees, charges and interest
  • Charge you late fees
  • Send your account to a collection agency
  • Report your information to a credit bureau, which may negatively affect your credit score

Short-term loans are an expensive form of credit and should be used only for immediate financial needs. Customers with late payments or credit difficulties or beacon score under 650 will not qualify for a down payment loan, as they will not qualify for a cash-back mortgage. We are not a “Payday Loan Company”, as the loan is not intended to be repaid by your income, but rather by cash-back funds. Payday Loan Assoc. info and laws.

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Down Payment Loans Canada
435 Spillsbury Drive, Peterborough, ON K9K 2N4