Interview Regarding Cash-Back Mortgages


“If the client absolutely isn’t prepared to wait to save a down payment,” McCallum told, “there are still better, cheaper options brokers need to be offering them, other than a cash-back.”

The above is a direct quote from the interview I did late last week for a new article at

One of the questions we get most often here at First Foundation is whether or not someone can purchase a home without a down payment. There are many reasons why someone might not have a down payments, such as:

- Just graduated from post-secondary and haven’t been working long enough to save up. – Was focused on paying down consumer debt rather than saving for a down payment. – Have the ability to save for a down payment but wants to get into the real estate market sooner rather than later. – Have other priorities for their money such as investments.

Whatever your reason, there may be a very legitimate reason to purchase a home before acquiring the necessary 5% down. The important thing is that you’ve considered all of your options and weighed the pros and cons – with a professional’s advice – so you can make an informed decision.

While true “zero-down” mortgages are no longer available in Canada, there are a number of ways to obtain the necessary five percent down payment, including:

1) Using your RRSP’s and the Home Buyer’s Program

2) A gift from family

3) Borrowing the down payment under the terms of the CMHC Flex Down program

4) A cash-back mortgage.

There are pros and cons to all of the above and you can find out more information about each option on our Zero-Down mortgage page.

Don’t hesitate to contact one of our Licensed Mortgage Professionals for more information.

OWN. GROW. PROTECT. First Foundation is the one-stop-shop for financially responsible Canadians looking to get great advice and save money. Whether arranging financing for a property you OWN, or looking…

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