I have two questions... 1. Can I really buy a home with zero down? 2. My husband and I are coming up on 1 year into a 5 year proposal..how will this effect us in getting a mortgage? Please advise. Thank you!
Hi Katie, Thank you for your request.
Yes, buying a home without having a down payment is possible. Some banks will give you the 5% down payment, if your credit history over the last 6 years is good, and you can afford the payments, based on a posted mortgage rate.
With regards to your plan with a proposal. Generally you will need at least 10%-15% down, until you have 2 years of re established credit after the proposal is paid. Your best plan is to try and get 2 new credit cards ASAP with $1,000 limits, which will require cash up front of apx $1,200 each to a company like MBNA , and/or Capital One. Then, if you are a first time home buyer, I would focus on saving money in a RRSP, that you will be able to use for your down payment and closing cost, when you are ready to buy a home. Currently you can take $25,000 per person out of your RRSP Tax Free, when buying your first home. So focus on rebuilding your credit and saving down payment money, and as soon as your proposal is complete, give me a call to create your home buying plan.