Zero Down Mortgage
Is a company: no
Is a proper noun: no
- 100% finance
- no cash down
- no down payment
- 0 money down
- Cash Back
- No Money Down
- 0 Down
- Zero Downpayment
Definition of Zero Down Mortgage
- Also known as "no money down", the "zero down" mortgage is a mortgage where 100% of the property is financed. Zero down refers to the amount of down payment required to finance the property which in this case is nothing. A Zero down mortgage will require a higher credit score, and may have a higher interest rate and a higher CMHC premium when compared to a conventional or high-ratio mortgage.
Related Terms and Acronyms
- GE Capital — Company,
➥ Also offers commercial financing.
- GE Capital is the new CMHC alternative in the Canadian Mortgage Market place. GE Capital like CMHC provides banks/lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure GE Capital assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "CMHC."
- High-ratio Mortgage — Definition, Important,
- A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
- Mortgage Insurance — Definition, Very Important,
➥ CanEquity offers mortgage insurance.
- A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
- Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
- Creative Financing — Bank,
- An innovative or unusual way of structuring a home loan that allows the buyer to buy the house.
- No Money Down Mortgage — Definition, Important,
- Available in Canada as a true 100% mortgage financing product.
- Cash Back Mortgage — Definition, Important,
- A mortgage that provides the borrower a lump sum cash payment.
- Mortgage Lender (ML) — Bank, Very Important,
➥ Used internally by mortgage brokers and mortgage lenders.
- A lender that offers mortgages, often through a mortgage broker.
- Maximum Financing — Definition,
- A loan given for a property where the buyer puts down the lowest allowable down payment possible.
- Loan-to-Value (LTV) — Bank, Very Important,
➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
- The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
- Low-down-payment Loan — Bank,
- A mortgage where the borrower puts down a small amount and borrows a high percentage of the purchase price.
- Down Payment — Bank,
- The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
- Low-down Mortgages — Definition, Important,
- Mortgages with a low down payment, usually less than 10 percent.
- Mortgage Brokerage — Bank, Very Important,
➥ CanEquity is a mortgage brokerage.
- An individual or group who brokers deals between their clients and lenders.
- Mortgage (mtg) — Abbreviation, Important,
- A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.