How to Buy A Toronto GTA Home with a Low or Zero Down Payment?

A Home Ownership Bank Program allows qualified Buyers to Buy a Home with Cash Back Mortgage 

Buy Zero Down with Cash Back Mortgages Video

Can You Get A Mortgage With No Down Payment?

Yes! You can get a cash back mortgage. Certain conditions apply. 
You may have owned a Home before and are presently Renting or maybe you are a First-Time Homebuyer and need a way to break into the Housing Market but held back because you thought you required a $20,000, $30,000 or even more for a downpayment.

Well regardless of your present situation, if you want to get into, or re-enter the housing market without having to make a cash downpayment, then this Cash Back Program may be just what you're looking for. 

Why pay your landlord's mortgage when you can be building your own equity.

Dash For Zero Down i.e. Buy with 5% down payment,
Take advantage of Bank Cash Back Program + Get Money for Renovations 
On Approved Credit [OAC], Certain Conditions Apply.

Industry insiders have prepared a new special report entitled, "How to Buy a Home With Zero Down Payment", and reveals how this cash-back and innovative program can get you into the housing market immediately and with absolutely low or no downpayment.

Order this report NOW and you can get into the housing market NOW and
with ABSOLUTELY LOW or ZERO DOWNPAYMENT.

What is Cash Back Mortgage for Down Payment?

How does a Cash-Back Mortgage Work?

Some Banks have a Cash Back Program. 
Banks give Buyers certain percentage of purchase price as a Cash Back Mortgage. 
These are higher interest rate mortgages. 
Some Lending institutions offer cash back mortgages and
affiliate themselves with a program called Purchase Plus Improvement.

There are some conditions and limitations to this program.
Your credit has to be good. 
Mortgage is for a fixed term.
If you break the mortgage term you will have to return the Cash Back.
Additionally, you have to qualify for an amount with posted interest rate.  

You initially have to have 5% down payment plus closing costs to purchase. 
Some lenders will give you the Cash-Back immediately after closing.
Few lending institutions may allow the initial down payment from your line of credit.    

Is Cash Back Mortgage A Good Deal?

Let's review the above with an example:
Using $100,000 as bank mortgage amount and upto 5% as cash back.

Calculations with Cash Back:
Cash back amount = $5,000 [i.e. 5% of $100,000]
Let's assume the 5 year posted interest rate is 4.74%
Monthly payment amount would be $566.89

Calculations without Cash Back:
Assuming interest rate to be around 2.89% 
Monthly payment amount would be $467.62

Difference with cash back and without cash back 
is $99.27 per month [i.e. $566.89 - $467.62]

Total 5 year amount difference being: $956.20
[i.e. $99.27 X 60 months = $5,956.20 - $5,000 cash back amount = $956.20]

So you approximately paid $1,000 with Cash Back or
5 times i.e. $5,000 for a $500,000 mortgage. 
Now at the same time consider
the appreciation of the property value during this 5 year term. 

So the answer is cash back is a good or bad deal depending on your situation,
market conditions and your ability to bear the mortgage amounts.  

Is Cash Back Mortgage Good or Bad?

With hot Toronto Real Estate market where you will only pay $5,000 extra
as in the example above and the value in 5 years could easily increase 
substantially it's a no brainer that it can be a great deal. 

What's the catch with Cash Back Mortgage?

The interest rate is higher. 
You will have to qualify for this high interest rate mortgage. 
The mortgage is a fixed term mortgage.
You will have to repay the Cash Back if you break the mortgage term.  

Should you stay away from Mortgage Cash-Back offers!

Yes, If you cannot afford the per month mortgage amount as it is higher.
Yes, if want to qualify for a higher mortgage amount. 
Yes, if you have your own down payment. 

How Cash Back Mortgages Work and Who Offers Them
Beware of Cash Back Mortgages
Cash-back mortgages: A deal from your Bank that regulators are not keen on
Cash Back Mortgages: The Pros and Cons You Must Know
Pros and Cons of Cashback Mortgages

How To Buy A House With No Money Down as a First-Time Home Buyer?

Here are a few options for a first-time homebuyer:
Borrow initial down payment funds from family, friends etc. 
First-Time Buyers can use their RRSP for the downpayment. 
Some lenders will allow using your line of credit for initial deposit.
Repay funds with cash back thereby prompting Buy with Zero Down Payment.   

Next, should you stay away from Cash-Back Mortgage offers! 

Consider the following when answering the above.
Do you want to take advantage of this hot Real Estate market?
Are you better renting and not sure where the market is heading?
Can you ponder on this; my mortgage amount is a kind of forced saving?
Are you bogged down with interest rates and not wanting to dwell further?

Should you withdraw from your RRSP to buy a house?
RRSP Loans vs Cash Back Mortgages
Ten questions to help you avoid mortgage-penalty shock
Buying a house? Here’s how to get a big tax refund
How to Use the Home Buyers Plan
Buying your first home: Three steps to successful mortgage shopping

So How can I Buy a House with Zero Down Payment and No Closing Costs?

Regarding closing costs, this amount you have to come up by yourself.
Consider first and last month rent, additional savings, borrow from family, friends etc.
Sometimes you may qualify for an extra cash back to augment this amount.
Closing costs are generally 1.5% of the purchase price.
You also get a refund being a first time buyer.
If you do all the math, it is not difficult to come up with this amount.

Generally you require 5% of purchase price as initial down payment. 
For initial down payment, you can use your RRSP.
Under the Home Buyers’ Plan [HBP]
you can take out up to $25,000 per person from your RRSP.
Some lending institutions will allow you to take out money from your line of credit.
You can take a cash back mortgage and
repay your line of credit hence prompting buy with zero down.

Using an RRSP to Buy a Home
Am I Eligible for the Home Buyers' Plan (HBP)?
The Home Buyers’ Plan dilemma
Using RRSPs to Purchase a House? What you need to know
How to use your RRSP to Buy a Cottage
Paying back the RRSP Home Buyers’ Plan
Using your RRSP to help Buy your First Home
How to borrow money from your RRSP without getting penalized
Should you use your RRSP to buy a First House?

How to Purchase a House with Cash Back Mortgage + get Money for Renovations? 

This one is interesting if you foresee minor renovations or are indulging in a fixer-upper.  
Some Lending institutions offer cash back mortgages and
affiliate themselves with a program called Purchase Plus Improvement.

So let’s say you qualify for a mortgage up to $500,000.
But you are only buying a property whose purchase price is $450,000.
Under this program you may qualify and can get money for renovations.
 
I have assisted many of my clients with all of the above
to fulfill their dream of owning a home.
Feel free to call / email me regarding your unique situation.
You will feel glad you called and thank yourself later. 

Act Now:

1. Dash For Cash:
Buy Zero Down with Cash Back Program + Get Money for Renovations
On Approved Credit [OAC], Certain Conditions Apply.
2. Call Now For: Scintillating Mortgage Rates |
Pre-requisite: Buyer Representation Agreement.
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