Are you still renting your home? If you answered yes, then you are spending your money for nothing. That’s right, for nothing! What if you had the chance to spend that hard earned money on your mortgage for your own home? Why not take it? This is the major problem most people have, and it acts as an obstacle for buying their own property. Well, now there is a way to do this, even without a down payment.

Firstly, you should go shopping. No, not apparel shopping! You should shop around for the best mortgage, especially from a reputable financial company. You should read all our other post to get more information on mortgage rates, mortgage insurance, buying a home and so much more. If you were to build a home, you can still sell it in the end and take your profit and leave, unlike when renting. When renting you do not have anything to sell, this is no return when renting. The problem is the sum of money needed to pay for your initial down payment. This is what we will be talking about below.

COMBINING MORTGAGE LOAN PLAN

For people who do not have enough money for their down payment they can use this method to receive money. This is usually known as an 80/20 option. What the loan lenders do is calculate the total value of the home that is being built. After certain qualifications and formalities, 80% of the total value of the home will be given for a set amount of time. Another portion will be given in correspondence with the remaining 20% of the value. The set amount of time is set by the borrower according to their income level. Also, you have the following combination choices to choose from;

• 80/20 Mortgage Combination
• 70/30 Mortgage Combination
• 80/10/10 Mortgage Combination
• 70/15/15 Mortgage Combination

WHAT ARE THE BENEFITS OF THIS TYPE OF MORTGAGE LOAN

The major benefit is that you do need to make a down payment, due to the fact that the loan will be paying for that. You will be available to get a tax rebate on both the 80% and 20% portion of the loan. This is a great advantage, this will bring you get savings in the long run.

Tools: Best Mortgage Loan Lenders In Canada

In regards to a request made by one of our visitors, we will be briefly talking about how a zero down payment works, and what kind of benefits come with it. So, you might be wondering; is this type of mortgage right for you? The mortgage industry and financial industry is one where their is intense competition. To compete forcefully in this market, it is extremely important to offer drop bottom deals, which will get people going wild. Companies are offering cash back and points for flights when getting a mortgage.

The new trend in the mortgage industry is getting a zero-down payment mortgage. However, this is only good for those who have a good credit rating, but have not saved up enough money. This type of mortgage is now available because the main officials have decided that the minimum 5% down payment is not required from the buyers own resources. This has been in effect since March 2004, the 5% now can be received as a cash back or even be loaned from somewhere. Even though this may sound good, it comes with several drawbacks which you may want to consider before taking a step.

As mentioned in the post about private mortgage insurance, this type of mortgage comes with a much higher insurance premium. To qualify for this type of mortgage, they follow a strict crieteria. You must have excellent credit and excellent credit history. One of these could possily turn you down. This type of mortgage usually comes with a fixed-rate closed mortgage, and incentives aren’t offered most of the time. This is plain simple; the lower amount you put down for your house, the higher the mortgage amount. So, if you are able to put down a higher sum of money down, you wold not only decrease your insurance premium, but the total cost of financing your home. Now, the question is, how do would you know if this is right type of mortgage for you? The best solution is to meet with a mortgage broker, financial lender or your personal banker. They will draw out charts and bring in all relevant information pertaining to you, and decide on what is best for you! You may use our mortgage calculators, to help yourself get a broad idea of how things work. Visit our mortgage calculator page.