No Money down means that one has borrowed 100% of the money to purchase the property. There are several legal ways to do this in Canada. As a matter of fact Government offers forgivable down payment for first time home buyers.
Here several other programs similar in nature where the down payment comes from other sources rather than buyers own. Due to lack of information and proper education most of people think that you have to lie or commit a fraud to do no money down. The truth is far away from that.
World Wealth Builders http://www.WorldWealthBuilders.com and Professional Real Estate Investors Group (PREIG) Canada educate and inform about Canadian Real Estate current strategies to promote home ownership, real estate investments and cater special groups including seniors with low income and Disable Canadians.
Informed Canadian Real estate Investors know several legal ways of doing no money real estate deals which are legal and transparent. Under Affordable Housing Program (AHP) all three levels of government provide you forgivable down payment and the Banks and lenders acknowledge that.
Canadian Banks also offer 100% financing provided you are qualified under their guidelines. This program is called Cash back. Under this program one can use cash back as down payment. Of course it can be expensive but works well especially during the rising market. Expert Canadian Broker or banker can assist you to obtain this type of financing.
Canada Mortgage Housing Corporation also offer 100% mortgages under the Flex plan. This is acceptable by all lenders and banks when they acknowledge that down payment came from others than the borrowers.
Under Home buyers plan (HBP) one can borrow down payment from their own registered retirement savings plan (RRSP) and finance their home 100% and acquire principal residence with no money down.
You may be able to use seller financing 100% of the deal. The simple reason could be two folds. First to defer capital gains and second could be getting much higher interest rate than banks. Who said the banks are the only and only source financing Real estate?
Recently the VanCity Savings Credit Union from the west which was offering interest free down payment provided you finance the balance 80% with them. Their model it is OK to loose interest on 20% down payment but make money on 80% financing as first mortgage. VanCity loses money on the interest-free down payment loan, but makes some of it back on the interest-only mortgage. Since it is Canadian credit union all the members benefit from this program. This is another way of doing no money down Real Estate in Canada.
Joint ventures are always done with no money down. It makes more sense to do that because you can write off all the interest cost .Majority of Real Estate Investment properties are financed 100% either borrowing money from other investors, line of credits or against the principal residence.
There are several other ways to buy Real estate with no money down which are fairly simple, legal, ethical and make sense to do that way only. No Money down is for those who have taken time to educate themselves and have taken advantage. It is for those Professional real Estate investors and home buyers who are well informed and educated.
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