Canadian Mortgage Rates
| Term | Rate |
| Prime Rate (P) | 3.00% |
| Line of Credit (LOC) | 3.50% |
| 5 Year Closed Variable | P -0.15% |
| 5 Year Open Variable | P +0.75% |
| 6 Month Closed | 2.89% |
| 1 Year Closed | 2.79% |
| 2 Year Closed | 2.89% |
| 3 Year Closed | 2.89% |
| 4 Year Closed | 2.99% |
| 5 Year Closed | 3.19% |
| 7 Year Closed | 3.89% |
| 10 Year Closed | 3.89% |
YOUR CANADIAN MORTGAGE BROKER
January 11, 2010
No Downpayment? No Problem with the "Free Down Payment Mortgage"
No Downpayment? No Problem with the "Free Down Payment Mortgage"
Coming up with a 5% down payment isn’t always easy, especially when you still have to cover closing costs, moving expenses, renovations, and all the other costs that come with buying a home. MyMortgage.ca will direct you to the lender that will pay the 5% minimum down payment on your behalf when you take out an affordable insured 5 or greater term.
The Free Down Payment Mortgage has been developed to assist homebuyers who have established an excellent credit history but have not accumulated the required down payment, or have chosen to use their savings for other asset enhancing purposes. The bank will advance the funds for the mortgage and the required 5% down to the solicitor on the closing date of the mortgage.
The banks Provides the 5% down payment for the Borrower.
Break-Down of Free Down Payment Mortgage Program
Down Payment:
The Bank will advance 5% of the property lending value to the solicitor (Lawyer) on the funding date, in the addition to the mortgage advance.
Mortgage Insurance Premium:
- Only 2.90%
Term / Rate:
- Posted rates for 5-year term and a 0.5% rate discount for 7-year term.
Eligible Properties:
- New (completion only) or existing properties
- Purchase transactions, single advance only
- Owner occupied single family unit and duplexes
- Type A properties
Maximum Loan to Value Ratio:
- 95%, plus mortgage default insurance premium
Borrower Qualifications:
- Applicant must meet banks and Canada Mortgage and Housing Corporation (CMHC)/Genworth Financial Canada (Genworth) lending criteria
- Maximum number of borrowers is two
- Third-party borrowers and non-occupying guarantors/co-borrowers are not eligible
- Minimum Beacon Score 680
Equity Requirements:
- Borrowers must have, from their own resources, liquid assets of 1.5% of purchase price to cover closing costs (1% for Genworth insured in Alberta only). These funds should be in place at time of application approval, and cannot be from employer relocation/benefits programs, provincial grants, gifts, etc.
- The 5% down payment and amount cannot be included as part of the customer’s assets on the application
GDS / TDS Ratio:
- CMHC Insured: GDSR N/A, TDSR 44%
- Genworth Insured: GDSR 35%, TDSR 42%
Payment Frequencies:
- Monthly, weekly, bi-weekly and semi-monthly
Prepayment Privileges:
- 15% + 15% prepayment
- Match-a-Payment option
Payout Penalties:
- Standard payout terms
- Free down payment claw back applies if paid out before expiration of term or if mortgage is assumed, paid out of reduced, by an amount in excess allowable each year under the Bank’s standard prepayment options, transferred, rate-blended, or renewed prior to the expiry of the original term.
Mortgage Process
In Other Languages
.
Breaking News
More News
December 2, 2011; MCAP has announced an agreement to acquire the residential mortgage operations and certain related assets of ResMor Trust Company (ResMor). The transaction is expected to be completed in the first quarter of 2012 and is subject to regulatory approval and other customary closing conditions. [ Read more... ]
October 25, 2011; The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. [ Read more... ]
October 19, 2011; Since 2008 the government of Canada has made mandatory changes to reduce the maximum amortization period from 40 years down to 35 and now down to 30 years for any insured mortgages.
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]
No Downpayment? No Problem with the "Free Down Payment Mortgage"
No Downpayment? No Problem with the "Free Down Payment Mortgage"
Coming up with a 5% down payment isn’t always easy, especially when you still have to cover closing costs, moving expenses, renovations, and all the other costs that come with buying a home. MyMortgage.ca will direct you to the lender that will pay the 5% minimum down payment on your behalf when you take out an affordable insured 5 or greater term.
The Free Down Payment Mortgage has been developed to assist homebuyers who have established an excellent credit history but have not accumulated the required down payment, or have chosen to use their savings for other asset enhancing purposes. The bank will advance the funds for the mortgage and the required 5% down to the solicitor on the closing date of the mortgage.
The banks Provides the 5% down payment for the Borrower.
Break-Down of Free Down Payment Mortgage Program
Down Payment:
The Bank will advance 5% of the property lending value to the solicitor (Lawyer) on the funding date, in the addition to the mortgage advance.
Mortgage Insurance Premium:
- Only 2.90%
Term / Rate:
- Posted rates for 5-year term and a 0.5% rate discount for 7-year term.
Eligible Properties:
- New (completion only) or existing properties
- Purchase transactions, single advance only
- Owner occupied single family unit and duplexes
- Type A properties
Maximum Loan to Value Ratio:
- 95%, plus mortgage default insurance premium
Borrower Qualifications:
- Applicant must meet banks and Canada Mortgage and Housing Corporation (CMHC)/Genworth Financial Canada (Genworth) lending criteria
- Maximum number of borrowers is two
- Third-party borrowers and non-occupying guarantors/co-borrowers are not eligible
- Minimum Beacon Score 680
Equity Requirements:
- Borrowers must have, from their own resources, liquid assets of 1.5% of purchase price to cover closing costs (1% for Genworth insured in Alberta only). These funds should be in place at time of application approval, and cannot be from employer relocation/benefits programs, provincial grants, gifts, etc.
- The 5% down payment and amount cannot be included as part of the customer’s assets on the application
GDS / TDS Ratio:
- CMHC Insured: GDSR N/A, TDSR 44%
- Genworth Insured: GDSR 35%, TDSR 42%
Payment Frequencies:
- Monthly, weekly, bi-weekly and semi-monthly
Prepayment Privileges:
- 15% + 15% prepayment
- Match-a-Payment option
Payout Penalties:
- Standard payout terms
- Free down payment claw back applies if paid out before expiration of term or if mortgage is assumed, paid out of reduced, by an amount in excess allowable each year under the Bank’s standard prepayment options, transferred, rate-blended, or renewed prior to the expiry of the original term.
Mortgage Process
In Other Languages
Breaking News
More News
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]