Home Purchasing Qualification

Posted by Anuj Gupta

"Can I buy a home with no money down?"

The mortgage brokers here at Alberta Mortgage are often asked this question, and 100% of the time the answer we provide is: Maybe, let's take a look. While there is currently no such thing as "100% financing," Canadian Homebuyers do have the ability to get financing that allows for them to make no "out of pocket" contribution towards the down payment on their new home. This article will explore some of the items that we at Alberta Mortgage are looking at in determining if it would be possible for an individual to purchase a home without having a full 5% for down payment.

There are 3 primary factors that represent the minimum requirements for purchasing a home without a full 5% down payment:

1. excellent credit
2. verifiable income
3. money for closing costs (lawyer, inspection, etc)

While these 3 basic criteria are generally always evaluated in the process of determining one's ability to qualify for a mortgage, their importance becomes paramount for those looking to purchase a home without putting 5% down from their own resources. Without any one of these 3 criteria met, nearly all mortgage lenders will not be able to help. However, if these 3 factors are met, it is likely that one of the qualified mortgage professionals at Alberta Mortgage would be able assist a potential home buyer with purchasing a home without a down payment. Other factors are involved the qualification process, but these 3 provide a strong foundation for mortgage qualification. If any 1 or more of the 3 above listed criteria are not met, it may still be possible to arrange for home financing.

For more information regarding this program, or for information about mortgage qualification in general, call Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.