Comments on: No Down Payment Mortgages

By: Types of Debt We Fall Into « Advice For Financial Success « Debt Free by 43

Mon, 14 Jun 2010 19:12:16 +0000

[...] to save 20% for a downpayment and take on a 30 year mortgage. In more recent years, folks took on no money down adjustable rate mortgages and are paying for it right [...]

By: Create Your Own Down Payment for a Mortgage! « Debt Free by 43

Create Your Own Down Payment for a Mortgage! « Debt Free by 43 — Fri, 16 Oct 2009 20:28:33 +0000

[...] couple of months ago I wrote about No Down Payment Mortgages and evaluated if they were worth the money. First time home buyers as defined by the CCRA can use [...]

By: No Debt Guy

No Debt Guy — Thu, 10 Sep 2009 00:43:11 +0000

It is interesting that the true interest rate of this program would be approximately 4.36% once you factor in the 5% down payment. Not great, but not bad.

By: Tom @ Canadian Finance Blog

Tom @ Canadian Finance Blog — Wed, 09 Sep 2009 22:50:23 +0000

Thanks for pointing this out to me back on my site, I wasn’t aware that no down payment was still possible. Even more shocking is that the numbers come in relatively OK!

Of course this increases the odds that your house might go down in value and leave your mortgage under water. Then again, you could say the same about 5% down compared to 20%.

By: investnoob

investnoob — Tue, 25 Aug 2009 03:18:43 +0000

I used this option (5% flex down payment) when I purchased my home over three years ago. The main difference is exactly as you described. You pay a higher rate of interest so that the cash is paid back. Also, there is a steeper penalty when trying to get out of the lending agreement (you have to come up with the remainder of the down payment).

I think in the end its kind of a wash as the value of my house has gone up at the same time. Similar homes have been sold, this year, for about 10% more than what I paid three years ago. The main thing to think about is. If you are going to save for a downpayment, you might as well go for the 20% down payment so that you may avoid paying the insurance premium. That is the main savings to be had. And, of course, it means you can usually afford “more” home.