This calculator is for illustration purposes only. We never share your information with any third party. And we NEVER pull a credit enquiry without your expressed written consent.
STEP 1
Excellent, your credit is right where it needs to be
Credit Fix
Here's what you need to do with your credit...
You'll need to work on your credit and get your score up. This is the catch with not having the down payment saved, you need solid credit history and good credti score. At this moment, with the borrowed down payment, an ideal credit score is 700+ with low balances on your credit cards or line of credit.
This is critical. At this time, credit utilization - how close you are to your credit limits - is as importannt as paying your debts on time. The closer you are to 'maxing out' your credit, the more your credit score will drop.
So here's what you can do: If your credit scroe is low due to missed payments, bankruptcy, or consumer proposal, the only solution to this is time. Maintain your regular payments, and monitor your credit. For Bankruptcy and Proposal, these items must be off your credit bureau completely before you can apply for the borrowed down payment.
If your payment history is perfect, but your score is still low, then this is likley due to high utilization. Good news is this is easily fixable. One solution is to bring cards and credit lines off their limit. Another solution is to open a new credit line and expand your available credit - if you are able to do this. Of course you can't use the available credit. But keep at it and you'll get there!
We DO NOT pull your credit with this Quote. Your information is used ONLY to send you a copy of your calculation amount. No portion of your information is stored, or shared with any third party in any way.
Income Check
Here's what you need to do with your Income and Debts...
Based on your income and debts your maximum home purchase price is below what you're aiming for.
The Federal Government mandates that the banks and mortgage lenders use a high stress test rate when qualifying you for a mortgage. This is what is dragging down your number.
That being said. Have you incldued the Canada Child Benefit for any kids 15 year and younger as income. If you earn significant bonus or ovetime income, and have done so over the last two years, incldue that as well.
For loan payments, only include loans. Do not include rent, or cell phone bills, etc. If you have any loans that a within a year of being paid off, exclude the payment. Or, if you have a significant income, but aren't qualifiyng for the mortgage amount you need, the culprit is your current debt load. To get the most bang for your buck, focus on paying down credit cards and lines of credit first.
A few years ago there were several types of No Down Payment Mortgages available, but the Federal Government made some changes to the program, leaving only one type left. This one.
In a nutshell, this mortgage allows you to borrow the minimum down payment from a separate down payment loan. Yes! You can do this. If you have no down payment saved you can still buy a home of your own.
Now here is the catch: All applicants must have good credit and solid employment income, this they are sticky on and it is a must.
But if have this then you can buy a home and get a fantastic low rate on the mortgage - the same rate had you saved up the down payment. So you are not penalized on rate, simply because your are tied of paying rent.
The costs for purchasing a home is the lawyer and optional home inspection, and for the mortgage there are no application fees. There is a slightly higher, one-time charge, Mortgage Insurer fee of 0.5%. But this is just added to the mortgage.
We have helped countless renters move from ever increasing rents and uncertainty, to owning a home of their own and building tens of thousands of dollars in equity in the meantime. Paying your landlord gets old quick. Try our calculator above and see what your options are!
Jason Hilborn
Manager, Residential Mortgages
Canada Mortgage Source Inc.
Features
No Fees!
What do we charge for our services - nothing. We get this question quite often. As mortgage brokers, who arrange for the mortgage and the down payment loan, we are
compensated by the bank, at absolutely no additional cost to you.
100% Safe
Your mortgage and down payment loan are with established Canadian Banks and Mortgage Lenders.
The Equity
It's all about the equity! As you pay down your mortgage and your home increases in value, you will build equity like crazy.
You get a fantastic Rate!
You won't miss a beat, you get the same low rate with this mortgage as you would with a down payment saved.
4.44%
5 year
Fixed Rate
OAC. Rates subject to change without notice.
Our Happy Clients
We reached out to Jason when we were purchasing our home and he is honestly the kindest, sincere individual you will ever work with! I wont ever work with another broker and I will ensure that anyone I know uses Jason. Moving and buying a home is such a stressful process and he was just able to give such reassurance during the whole process. He really is so knowledgeable and I would recommend him to anyone! Thanks again for everything.
Sam J.
Highly recommend using this company no matter your financial situation especially if you don't have a down payment, or don't have great credit, you'll be surprised at what they can help you with! Honestly, I thought I was years away from being a home owner again and am writing this review on signing day.
I thought this company was a scam haha and thought I'd be stuck renting for several more years. But it's not, Jason was great to work with so don't hesitate to reach out and see how they can help.
Customer service was great, response time was always quick, and he was super accommodating to any communication style (text, email, phone). Thanks Jason, keep up the great work!
Tonni L.
We had Jason Hilborn as our mortgage specialist and champion for our home purchase. Jason was very hands on with us from setting up our financing by creating a realistic plan to follow and succeed with all the way through the lengthy waiting time obtaining approval that our home purchase can proceed. His knowledge, willingness to be clear in mentoring us through this purchase was invaluable and in my experience incredibly rare to receive from this profession. His honesty was also appreciated to help ensure we had the best opportunity at getting a home to fit all our needs while also not over extending ourselves to a point where we would be able to enjoy are new home purchase.
We have no reservation in recommending Jason and have passed his name on within our own circle so that they also can benefit from the amazing service, professionalism, and good personality. My profound thanks and appreciation to Jason. He made a very stressful situation bearable and in some cases enjoyable.
Duncan H.
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*Please Note: the CMHC premium is now 4.5%. or $500 per $100K borrowed. For more information on this please contact us
Frequently Asked Questions
Yes! If it makes financial sense for you, why wait to purchase your own place. Not everyone is lucky enough to have family who can simply gift the 5%. For those of us who have no option but to save, it's a tough slog. It's estimated the average buyer will have to save five to ten years just for the 5% down. And with rents increasing every year, along with home prices, it's common to hear from our client's that they felt like they were 'chasing their own tail'. We have helped hundreds of home buyers start their lives and build tens of thousands of dollars in equity, years sooner. It doesn't hurt to try!
No. When you request a simple Quick Quote we do not pull your credit. However, if the estimated purchase price that we give you fits with what you want, then the next step is a Pre-Approval For this we will pull you Equifax FICO score, it is a full enquiry, we only do it once, and only with your written or verbal permission. And again, this enquiry will not hurt you. It's is common misconception that 'hard hits' automatically reduce your credit score. If you rarely apply for credit, your score will not decrease. However, if you are 'credit seeking' and having multiple lenders pull your credit bureau multiple times within a short period, then yes, then yes your credit score will decrease. Again, if you haven't applied for anything for months, you're all good.
We charge no fees. As licensed mortgage brokers when we place your mortgage with a Canadian Bank, they compensate us at no additional cost to you. As well, as a buyer of a new home, there are no Realtor fees. When someone sells a home the listing agent charges the seller a fee for listing, your Realtor simply splits the fee collected by the listing agent. Again, at no additional cost to you. As a buyer you two costs to purchasing a home are the lawyer's fee (approx $1800) and the property inspection (approx. $500), should you choose to get one. For Alberta buyers, this is the extent of your home buying costs. At the same time, the Flexdown mortgage rate, is the same rate as a 5% down payment mortgage rate. So there's no difference there. But one difference with the Flexdown is that the mortgage insurer that accepts this type of mortgage, does charge a 0.50% one time premium. But this charge is added to the mortgage balance and not out of pocket.
Good credit history is critical for approval with the FlexDown. A missed payment here or there, is no big deal. However, if you've missed payments systemically over years, have collections, etc. then you will have to improve your credit before this is an option. At the same time, you cannot be in the middle of a bankruptcy, ODP or Proposal. If you are, then you must complete this, and wait the required number of years for this to drop off your credit bureau.
With our calculator, use your base salary income or you base hourly wages. Bonus and overtime income may be included, however they banks use a two year T4 average. This two year average also applies to commission income and variable income.
