Normally in purchase financing, mortgage lenders have a rule that their loan be based upon 1) the appraised value of the property, or 2) the purchase price, whichever is less. But what if the property has appreciated considerably since the purchase price was agreed to years ago, as may be the case in pre-sale condominium and pre-construction purchase agreements and even rent-to-own transactions? The question then becomes, can I get a pre-sale condo mortgage based on the higher market value? Can I use price appreciation as my mortgage down payment?

Before you can buy a house, you need to make sure you can afford it and that there will be financing options available to you. This is where a pre-approval comes in. As mortgage lending criteria has become more strict over the years, the pre-approval and the increased certainty and confidence that goes with it has become an essential first step for the would-be-home-buyer.

(Last updated 2019)

Yes and No. 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 how to purchase a home with zero-down payment.

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!