 |
|
|
|
CMHC will now allow real estate investors to purchase rental properties with NOTHING down. This is an innovative product launch by CMHC. Previously, the most generous programs were those offered by Genworth and AIG with 10% down. According to CMHC there is no limit to the number of rental properties you may own under their zero down program.
For people with great credit and provable income but have trouble coming up with the down payment required this could be a great way to to start building your real estate investment holdings.
One drawback to the 100% financing rental program is a higher CMHC premium. CMHC charges an insurance premium of 7.25% on a 100% financing but should be fully tax deductible. The premium decreases with the more you put down.
Another draw back is that right now it's difficult to find a lender that is offering the 100% financing for rental units. It's not unusual for banks to take a bit of time to adopt new lending programs.
Don't hesitate to contact us for more details about your mortgage needs. We can be reached at 1-888-665-1344 or 604-764-6336. We are a mortgage broker located in Canada, BC helping people purchase property. |
|
|
