Zero down is the new buzz word on financing.  However, buying zero down is very different from going to a furniture store and financing  with zero down and no payments over 6 months or a year. 

A house is a long term committment! .

When you don't put any money down on your home your payments will be substantially higher than if you did.... The downpayment reduces your monthly payment.

All banks and financial institutions have steps you must take to qualify financially to purchase a home.  To buy Zero down you will need to fit these criteria... You will need a substantially larger income than if you bought with a downpayment, you will need an exceptionally good credit score in order to convince the mortgage institution to take the risk and you will need to demonstrate your ability to service your debts.

Plus you will be required to pay a fairly hefty insurance fee for the privilege of buying zero down.  This is because in Canada the Government requires that a  high risk mortgage (over 75% of the purchase price) must be insured.  This fee could be $6000, $8000. or more depending on the size of your mortgage... The fee is then added to your mortgage and must be paid off over the term of your mortgage.

So yes you can buy Zero down but it is not ideal for most people. So don't get caught by the hype.

However if you are sure that Zero Down is the way for you to go then take these steps before you go out and look for a home.

1) Do a Credit Bureau Report on yourself or

2) Go to a major bank or financial institution and make an application.

3) Don't forget to bring proof of your income.

4) The Bank will do a credit check on you and tell you whether you qualify for a Zero Down Loan  and the amount you will qualify for.

5) Ask the Bank  to tell you how much of an insurance fee you will be charged on that mortgage amount... At the time of this writing a $200,000.00 first mortgage will cost you an insurance fee of $12,000. This is added to the $200,000.00 to be paid over the term of your loan. So in fact you must be able to qualify for payments on $212,000.00. 

If your okay with this give us a call.  We can help you get creative in generating a substantial downpayment and arrange a customized financing plan.  We would need to speak with you in person to discuss your individual needs and have our Mortgage Broker call you and take advantage of our  Free Consutlation Service.