8. Can I get 100% mortgage financing and what is the cost?

100% financing is in fact available through several different sources, one of which we addressed earlier in question number 4 under the down payment category, whereby a borrower can receive a cash back should they be eligible, which can be used as a down payment. The cost for this type of financing is typically a slightly higher mortgage insurance premium and posted mortgage rates with no discount.

Borrowed funds bringing the total amount borrowed on a purchase up to 100% are also acceptable as down payments, as long as the required payments under the loan terms are factored in the debt service ratios.

Other sources of 100% financing are through sub-prime lenders who self-insure their portfolio. These types of mortgage loans are financed at slightly higher interest rates and premiums, and are usually utilized to finance the applicant(s) who do not qualify for mortgage loan insurance through CMHC or Genworth Financial. It is important to note that this type of financing is also used when 100% financing is required for re-financing purposes for debt consolidation, and all the equity in the existing home owner’s property is required to accomplish the ultimate goal of improving cash flow. (Click here to contact one of our Mortgage Edge Consultants for more details on these products).