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ZeroDown Mortgage
You can be financially better off with a
Zero Down mortgage.
Three ways for zero down
Free Down Payment Mortgage
Zero Down Mortgage
5% Cash Back Mortgage
Zero Down Mortgage vs 5% Down Mortgage
Two friends, with $10,000 each, buy identical homes next door to each other for $200,000 on the same day. One obtains a ZeroDown mortgage the other a high ratio mortgage that uses his whole $10,000 for a down payment.
Here is what the ZeroDown friend does
He buys a RRSP with his $10,000. Not just any RRSP but a spousal RRSP, I will explain later. Something like this . . . . .
 1st year buy a $10,000 RRSP instead of using it for a downpayment
2nd year buy a RRSP with the tax rebate ($3500) from last year
3rd year buy a RRSP with the tax rebate ($1225) from last year
End the RRSP purchases with a $428 rebate from the 3rd year
I am using 35% tax bracket, and a compounded return of 5% on the RRSP's. The 1st. year RRSP is in for 3 years, the 2nd in for 2 years, and the 3rd in for 1 year plus the remainder of $428 grows the RRSP to $17,149 in just three years.
The owners agree to sell after 3 years for $225,000. How did they do?
Sale Price$225,000 $225,000
Mortgage Balance-$184,792-$197,672
Gross Profit $ 40,208 $ 27,328
RRSP Investment +$ 00,000 +$ 17,149
Adjusted Profit $ 40,208 $ 44,477
When the high ratio friend saw the numbers he was furious and said it couldn't be true. But the numbers do not lie.
How can a ZeroDown mortgage at a higher interest rate, higher insurance fee, and higher mortgage amount be more profitable than high ratio mortgage with a down payment? The ZeroDown friend explained it "By being creative".
The high ratio friend stormed home slammed the door and got out his calculator. Here are the costs, he calculated, for the first three years
Three Year Cost
$1186.08 x 36 months = $42,699 $1463.29 x 36 = $52,678
Down Payment +$10,000 +$00,000
Adjusted Cost $52,699 $52,678
ZeroDown mortgage is more profitable then the numbers show. Here is why. The spousal RRSP - at purchase is a benefit to the high earning spouse (35%) - when cashed in, three years later, it is taxed at the lower plan holder rate of 15%.
A ZeroDown mortgage can create unearned income. At the end of the day it is the amount of money
How it works
You will qualify if you have been employed at the same job for two years, have a good credit score (beacon score). Established credit with at least one year history, a minimum $5000 loan - a payment of at least $200 a month and a bank credit card. If you are not sure if you qualify give me a call and I will check for you.
How To Apply
Click on this link or the left hand side navigation menu at the top marked Mortgage Application . This will take you to my online mortgage application page. Fill out as much as you can and submit it. The applicaiton will be sent to my office. I will e-mail you when I receive it if I need more inofrmation.
Your application will be checked and I will contact you with the results within 24 hours
How Much Does It Cost?
No fee for a Zero Down mortgage. I am paid by the lender so you don't have to.
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