Free Down Payment Mortgage
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.
Eligible Properties:
- Purchase of owner occupied principal residence
- Single advance only
- Not eligible for Pre-approval
Amortization Options:
- Up to 30 year amortization available.
- Insurance for all of our extended amortization products will include a 0.20% premium surcharge for every 5 years of amortization beyond the traditional 25-year mortgage amortization period
Borrower qualification:
- Strong credit and credit score (Credit score of 650 or greater)
- Liquid assets of 1.5% of purchase price to cover closing costs available from their own resources.
Free Down Payment Mortgage Example:
| Purchase Price: | $300,000.00 |
| Down Payment (5% down given to you by the bank): | $15,000.00 |
| Mortgage (95%): | $285,000.00 |
| Insurance Premium (2.9%): | $8,265.00 |
| Total Mortgage: | $293,265.00 |
| Mortgage Rate (6.45%): | |
| Monthly Payment: | $1,955.48 |
When taking the Free Down Payment Mortgage clients are required to take a 5 year closed or greater term.