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 31st.
Here is a link for more information on how cash-back mortgages work. Contact me with any questions.
http://christinebuemann.blogspot.ca/2012/05/limited-time-opportunity-55-cash-back.html?m=1
www.christinebuemann.com
https://www.facebook.com/#!/ChristineBuemannMortgageBroker
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 31st.
Here is a link for more information on how cash-back mortgages work. Contact me with any questions.
http://christinebuemann.blogspot.ca/2012/05/limited-time-opportunity-55-cash-back.html?m=1
www.christinebuemann.com
https://www.facebook.com/#!/ChristineBuemannMortgageBroker
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