New No Downpayment Loans

Did you know that you if you have excellent credit and did not save enough down payment money you could still be eligible to purchase a new home. With new insurance initiatives from CMHC and Genworth Canada, a zero down payment loan is very possible. You can even combine a zero down payment loan with a 40 year amortization.

Since Vancouver prices have sky rocketed since 2001 without any signs of dropping till after 2010, most people have been stuck renting until either the prices drop or they can save a large enough down payment. If Vancouver condo prices do grow by 20% from now to 2010, it would make perfect sense to jump into the housing market now versus waiting till later.

Conventional Mortgages Now 20% Downpayment

April, 23, 2007 - Effective immediately, the threshold triggering the requirement to pay high ratio mortgage insurance has changed to a 80% loan-to-value threshold from 75%.

Insurance premiums average anywhere from 1.0-1.6% of the mortgage depending upon qualification and mortgage terms. If you required a mortgage of $300,000 and your insurance premium was determined to be 1.5% – by not having to pay the premium, you would now save $4500.00. That is a substantial savings for homebuyers who previously had to scrimp and save for a down payment of 25% to avoid paying mortgage insurance fees.

Most if not all Canadian Lenders are on board with this new government initiative.