| People with liquidity crunch, especially those who are | | | | comes at an interest rate much higher than the |
| purchasing house for the first time, can get really | | | | ordinary mortgages. |
| bogged down by the cumbersome and frustrating | | | | Another factor to consider is how heavily the lender is |
| process. More so, if you have very limited or almost a | | | | relying on their ability to recover the investment they |
| negligible amount to pay as down payment. However, | | | | have made in your mortgage. To ensure that the price |
| with the current real estate market condition, together | | | | you pay is at par with the market value of your home, |
| with the low interest rates, financial companies are | | | | they may conduct or refer an appraisal, the cost of |
| coming up with new and innovative schemes to | | | | which will have to be borne by you. If your appraisal |
| attract more borrowers. One such concessional | | | | matches the sale price of your home, you will be able |
| scheme is the zero mortgage option, also called 00 | | | | to proceed with the sale process. |
| percent financing. | | | | In addition to this, the lender will charge additional fees |
| 100 percent financing option provides the borrower the | | | | for processing the loan documents, etc. This is called |
| opportunity of home ownership, with zero down | | | | as points or loan processing fees. You will also be |
| payment. Thus, owning a house is no longer a distant | | | | expected to set aside funds for other fees such as |
| dream. While ordinary mortgages require an upfront | | | | legal fees, real estate fees, land transfer tax, etc. |
| payment, ranging anywhere between 10 to 25 percent, | | | | Qualification criteria for a zero payment mortgage are |
| a borrower can acquire a mortgage under 100 percent | | | | similar to a traditional mortgage. Your credit score and |
| financing option with no down payment. You will, of | | | | history is of utmost importance. 100 percent mortgage |
| course, have to shell out funds for charges like closing | | | | is advanced only to people with liquidity issue and not |
| costs, etc. However, if you find the right lender, these | | | | to those with a bad credit history. |
| costs will come out to be a very small percentage of | | | | For more information, you may contact: |
| the purchase price of the property. | | | | Allegro Mortgages Corp. – Best Broker for All Your |
| Now let's face it – there are no free lunches in this | | | | Financing Requirements |
| world. The colossal financial flexibility of zero down | | | | (416) 987-0008 |
| payment comes with certain strings attached to it. Fair | | | | Check out amortgages.ca/ for information on different |
| enough too, considering the huge risk the lender is | | | | refinancing options. |
| assuming. First and foremost, 100 percent financing | | | | |