Christine Buemann Mortgage Broker

As you may have heard, the Office of the Superintendent of Financial Institutions Canada (OSFI) has eliminated the program that some lenders provide that allows borrowers to use “cash-back” from their mortgage as their down payment. With some lenders offering up to 5.5% cash-back, it allows borrowers to purchase a home without having saved a down payment. Because you are essentially financing 100% of the purchase price, there are higher risks and therefore a higher interest rate (bank’s posted rate). It is often viewed as a great opportunity for many first time buyers to get into the market while home prices and interest rates remain low. The standard qualifying criteria applies, as well the borrower must have a good credit score. In order to take advantage of the 5.5% cash-back, the application must be submitted prior to October 31 st . Here is a link for more information on how cash-back mortgages work. Contact me with any questions. http://christinebuemann.blogspot.ca/20...

I currently have access to a lender offering 5.5% cash-back for clients with good credit but no down payment saved. On a $200,000 mortgage , your monthly payment would be approximately $1108 a month . The cash that would be given back to go to your down payment would total $11,000 . If you were to save up that amount, you would have to put away at least $183.34 a month for 5 years. Keep in mind that amount is on top of any rent that you would be paying as well. If you were to take the cash-back mortgage, your mortgage balance would be reduced by approximately $15,621 over that same 5 year span. You would also be able to take advantage of the rising home prices and gain equity in your home while living in it! This opportunity is a limited time offer through a very reputable bank. For more information on this product or any mortgage products, please contact me today. *Information for the cash-back mortgage is based on the posted 5 year fixed rate of 5.34% with a 30 year am...