How to Have 100% Financing - Part 1

Yes. 100% Financing exists. Here is 1 of the 5 ways:

Method 1: 100% Financing with Insured Mortgage

The obvious and the most straight forward one. If your can debt service the mortgage payment (see qualifying article), you can get a high ratio mortgage up to 100%, and pay insurance premium 3.10%, so it will be $3100 on a $100,000 mortgage. (note the $3100 can be paid upfront or amortized into the monthly mortgage payment)

Pros: It's straight forward. As long as your income can qualify for the payment (TDS/GDS), the value of the property makes sense, your credit score is >680 with Equifax. The interest rate is fully discounted, which is the lowest possible interest rate you can obtain.

Cons: You pay big insurance premium. If you are only holding the property for 1 year, your cost of $100,000 loan is $3100 for one year. If you, however, hold the property for 10 year, the cost thus is relatively low. Know what your needs are.

Note 9/12/08

As of Oct 15th 2008, 100% financing is no longer offered by CMHC, Genworth, or AIG due to the US credit problem. Goverment of Canada has halted 40 year amortization and 0 down payment. For other strategies, consult with Christine Chien or stay tune with our future postings and strategies.