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Orginally posted by saba

hi,
its 8 months that i have migrated to canada
i do not have a job i am self employed
i wanted to know if i can get mortgage to buy a house by 5 or 10 % downpayment?

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HI Saba,

As Amit has rightly said, it is really very difficult for a self employed person to get a mortgage with only 5-10% down and that too when he can not prove income ( provide 2-3 years Notice of Assessment from CCRA showing his/her gross income). However, there are some 'B' & 'C' lenders (generally Trust Companies) who will give you mortgage up to 75% of the value of the house (subject to certain conditions) and would not ask for your income but would settle on your declared income and would allow you to get a 'second mortgage' behind their first mortgage upto 85-90%, which means you put only 10-15% down as your equity (depending on lenders requirements) and then arrange for a second mortgage from some private funder (obviously at a much higher interest rate & commitment fee) and these lenders would give you mortgage for the remaining 75% value ( not the very best rate and some time with their commitment fee as well) and you can buy your house. Mind you, you will get the mortgage but would have to pay higher rates ( and fees as well). However, this process saves you 'mortgage insurance premium' as the first mortgage is up to 75% only and the lender would not insist for CMHC/GE insurance.

You can send me an email with your details or call me and we can see if we can help you in getting your 'dream house'