Yes, in Canada it is still possible to finance 100% of a property's value if you know the rules and criteria. BUT - you need excellent credit history and reliable employment. Here's an illustration of how a zero-down mortgage works today.
In this blog, I provide a refresher on the down payment (equity) requirements for residential mortgages. It is a very common question and the answer depends on many factors. It depends on the property type (house/condo, acreage, vacant lot, farm etc.), who’s going to live in or on the property, how you earn income, and your credit rating. It also depends on whether you are looking for purchase financing or to replace/renew an existing mortgage. In this article, I am going to try and simplify the various ‘lending rule books’ for you in only 600 words!
Way back, my first home was a mobile home in Calgary's Greenwood Village mobile home park, out in the northwest part of the city. It was actually a nice park, and the mountains were visible, and lots of places to walk our dog. Our first home is the one in the centre of the picture, and the little shed I built is still standing out back. We couldn't get a mortgage back then for reasons I didn't understand, so we bought it with a little help from the Bank of Mom & Dad.
Michael & Ginny had done their time... years in University, then hard at it in their careers. Ginny had become pregnant and stepped out of the work force when Tyler was born. Mike continued working long days in the Calgary city core, up the corporate ladder, and making good money. But with the job came stress, fighting with traffic daily, and Tyler - the boy was growing up so fast...
When Shauna and Gerry called me, they were paying almost $2000/mo rent + utilities and desperately wanted to buy their own home and quit paying rent, but just couldn't seem to get on track for a mortgage approval. Now they are interviewing prospective tenants.
A question that often comes up with clients is about permitted sources of down payment and how long the money has to be sitting in the client's account. Here's the list I send to my mortgage customers: