No Money Down Mortgage

No Money Down Mortgage


Although a no money down mortgage (0% down payment) is no longer available directly through CMHC, there are still ways to obtain a CMHC insured mortgage with no money down. Here are some of the options available.


  • 5% down mortgage with a 5% cash back component
  • CMHC permits down payments to come from borrowed sources (credit cards, line of credit, family) provided that this is disclosed to the lender.


Used in conjunction, a home buyer can borrow their down payment and obtain a 5% cash back mortgage. Once the home closes the buyer can pay off the borrowed money with the cash back. 5% cash back mortgages are available from several lenders and will usually carry a premium charge of 1.5% or higher over traditional mortgages. The borrowed money must be in a bank account or savings vehicle for 90 days prior to submitting a mortgage approval..


The no money down mortgage option utilizing the above two stratagies are not available to applicants with a poor credit history. A minimum beacon score of 650 or higher will be required to qualify.


For more information on a no money down mortgage in Ontario, call today or apply online.