Zero Down Payment Mortgage
If you have zero down payment saved there are mortgages options for home buyers in Alberta. There is confusion in the market due to recent changes in Federal legislation eliminating bank cash back mortgages for zero down payment, but enhanced Zero Down Flex Down Payment mortgage programs still exist. Bank and branch staff may say they don't - but they are incorrect!
These existing programs allow a first or second time home buyer to purchase a home and own it outright with a standard mortgage at today prices. Prospective home buyers no longer have to sit, wait and watch home prices in Alberta climb higher. We have the affordable solution for owning a home sooner then expected.
Zero Down Payment - CMHC Flex Down
Incredibly affordable, under this program you receive a fully discounted rate and it's often below what the bank branch's rate offer. The additional cost of this program through CMHC amounts to $200 per $100,000 borrowed, this is charged once, and appied to the balance of the mortgage. The mortgages are 100% safe as they are backed by the federal government and available on existing homes across Alberta.
Benefits of owning today
While owning your own home today and not paying rent (and your landlords mortgage) is the most obvious benefit. The not so obvious benefit is not having to wait and watch home prices increase.
It can take the average person in Alberta two to four years to save up the 5% down payment. During that time home values can increase, sometimes substantially. Here's a comparison on the cost of waiting and the cost of the Zero Down Payment Mortgage in Alberta.
Wait and Save
- - Target Purchase Price: $300,000
- - 5% Down Payment: $15,000
- - Save $625 per month for 2 years
- - Home Price increase 3% per year
- - Value of home at end of the two year savings: $318,000
Zero Down Now
- - Target Purchase Price: $300,000
- - Own now with Flex Down
- - Interest on down payment over 2 years: $1800 approximately* OAC
- - CMHC Flex Down Cost: $600