Zero Down

What Is A Zero-Down Payment Program?

According to the CMHC, you have to pay at least 5-10% of the total amount for a home if you want to buy a property. However, even that much can be a lot when it comes to certain houses, and paying that amount of money in a single go may not be possible for some. But that shouldn’t stop you from buying your dream home. Well, we have a solution for you. It will let you buy a new property at zero down payment or at very low down payment. The Zero Down Payment program from Royal Canadian Realty is exactly what sounds like; initially, you won’t have to pay a single penny when you are purchasing a property. Even if you do have to pay (depending on the property) the amount would be less than 5% of the total amount, and that’s it. Our team will take care of the paperwork and you will be the owner of a brand new home.

How To Qualify For This Program?

Before October 31st, 2012 there were some money lenders in Canada who would give you a cashback on the down payment. However, the downside of this is, you would have to pay a higher interest down the line for a 5-year term period. So, eventually, you would shell out more money. That option is now gone. As of April 1st, 2019, the CMHC has introduced the Flex Down plan where you can borrow the down payment part for your new property from a bank (it can be as a line of credit as well) or from a lender or from someone who is not related to the sale of the property. This way, you save some amount which you can use in any case of emergency.

You will have to fulfill some criteria to be eligible for this plan. Here’s a list of guideline you can have a look which gives you a better understanding of what you need to do to be eligible for the zero down payment program.

1: Your credit score should be at least 680 and above. This sums up to, not more than one month’s late payment on any credit cards in the previous two years. It would also include now late payments on mortgages or loans or no bankruptcy filing in the previous 7 years.

2: You should have stable employment for at least 2 years in the same line of work and a minimum of 6 months of employment with a new company.

3: You should have 1-1.5% of the purchase price cash from your own resources for closing costs on the sale of a property. (This includes appraisal, property tax adjustments, legal fees, etc.)

4: The price for the property for sale in question should be less than $700k and it should not be more than four times your gross annual taxable income.

5: You will have to be a Canadian Citizen or a permanent resident of Canada.

Who Is Eligible For This Program?

The zero down payment program is an excellent option for anyone who has built an excellent credit score over the years but still has not managed to secure a minimum down payment for their new property. This can happen if you are managing the financial expenses for your entire family or maybe you have to use your saving for some emergency. We believe that shouldn’t come in the way of you and your dream home. If you have an excellent credit score and have not been a defaulted in paying your bills and loans, then you can apply for this plan.

Another way to qualify for this program is to leverage Canadian Child Tax benefits and income from a non-residing immediate family member (who can be a co-signor). An immediate relative can also offer you the down payment as a gift, but it can’t be used to prove your down payment. Additionally, if you have all the documents needed which proves your stable income, then you are good to go.

We understand that saving money for a home is not easy and you may never know when you will have to use that money for something else. This is where you can choose this plan and easily be the proud owner of a brand new property. Speak with our team at Royal Canadian Realty. Based on your property needs, we can advise you on a suitable plan. Call our office and book an appointment today!

Compared to traditional home finance options, a zero-down payment program has several advantages. The following is a summary of what they are, have a look:

You won’t have to worry about saving a hefty amount before buying a new home. This helps you with your monthly expenses without the burden of thinking about saving for real estate.

You can use your lump sum saved cash for anything such as remodeling your home, go on a vacation, investing in a new business, or using it in an emergency, it’s your choice.

Applying for a zero-down payment program can help in improving your family’s lifestyle. This applies to anyone who is leaving as a tenant and paying exceptionally high rent every month.

Even if you have to pay a low down payment, as low as 5%, you can borrow it from a traditional money lending institute like a bank.

To sum it all, in a market, where monthly rentals are increasing like never before but the increase in the value of a property is slow, a zero down payment program is ideal if you are planning to purchase a property. For a customized financial plan, contact Royal Canadian Realty.

Why Should You Trust Royal Canadian Realty For A Zero Down Program?

Royal Canadian Realty Team Mana is one of the fastest-growing real estate brokerages in all of Mississauga. We have an excellent team of realtors who know the trade inside-out, can help you with your real-estate requirements and resolve any queries you may have. Alongside Mississauga, we have a branch office in Markham as well and you can call either to set-up an appointment. Since we started our small business we’ve connected with many well-known mortgage brokers and have built a huge network so we can give you the best deal available in the market. You can compare if you want to. We are also the proud members of the BREB, Mississauga Real Estate Board and the Toronto Regional Real Estate Board. Our team can help you find the home that you are looking for and at a zero down payment option. Trust us, you won’t regret it.