The “Big Five” Canadian banks include Royal Bank of Canada, Toronto Dominion Bank (TD Canada Trust), Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce (CIBC). Are there other viable options?
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The best TFSAs in Canada for 2024 Nov 30th
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TD Bank says anti-money laundering steps coming along as it reports $4.25B Q2 profit - Yahoo! Finance Canada + MORE May 28th
TD Bank says anti-money laundering steps coming along as it reports $4.25B Q2 profit Yahoo! Finance CanadaTD Bank posts profit jump on strong interest income The Globe and MailTD Bank Lifts Dividend After Strong Quarter for Operations WSJTD’s Earnings Beat Caps Off.... More »
The best high-interest savings accounts in Canada for 2024 + MORE Dec 30th
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The best high-interest savings accounts in Canada for 2024
Here are the accounts offering the highest interest rates and lowest fees.
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What is a consumer proposal? How does it work? + MORE May 23rd
Getting trapped in a perpetual cycle of debt with seemingly no way out is one of the most stressful situations life can throw at you. For anyone looking for a way forward, experts say a consumer proposal can break the chain without the need for a bankruptcy filing.
While everyone’s debt toleran.... More »
Are your deposits at Canadian financial institutions safe? + MORE Jun 10th
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We live in Ontario, and in light of the current banking problems in the U.S., we are a bit concerned about our investments.
They are held at three different banks at the moment and are largely in GICs and high-interest savings accounts.
We are aware that up to $100,000 is insure.... More »
Zero Down Mortgages: How to Buy a House with No Down Payment
– canadianfinanceblog.com
There was a time when you could go to the bank and qualify for a mortgage without a down payment. But is that still a thing, and if so, is a zero down payment mortgage even a good idea? I’ll answer that question in this article and provide some different ways to come up with your down payment, within the rules.
A History of No Down Payment Mortgages in Canada
During the early 2000s, many Canadian banks were heavily promoting zero-down payment mortgages.
In most cases, it worked like this: the borrower waived the usual mortgage interest rate discount and accepted the higher posted rate in exchange for a 5% upfront discount, which covered the 5% minimum down payment requirement. It was similar to a 5% cash-back mortgage, except the cash-back didn’t end up in the borrower’s pocket; it was used for the down payment.
The borrower remained responsible for covering the closing costs (lawyers fees, etc.) of approximately 1.5% of the home’s purchase price.
However, in 2008, in response to the mortgage crisis, the Canadian government banned no-down payment mortgages from federally-regulated financial institutions and began imposing other mortgage restrictions, such as getting rid of 40-year mortgage amortizations…
A History of No Down Payment Mortgages in Canada
During the early 2000s, many Canadian banks were heavily promoting zero-down payment mortgages.
In most cases, it worked like this: the borrower waived the usual mortgage interest rate discount and accepted the higher posted rate in exchange for a 5% upfront discount, which covered the 5% minimum down payment requirement. It was similar to a 5% cash-back mortgage, except the cash-back didn’t end up in the borrower’s pocket; it was used for the down payment.
The borrower remained responsible for covering the closing costs (lawyers fees, etc.) of approximately 1.5% of the home’s purchase price.
However, in 2008, in response to the mortgage crisis, the Canadian government banned no-down payment mortgages from federally-regulated financial institutions and began imposing other mortgage restrictions, such as getting rid of 40-year mortgage amortizations…
