What is guarantor mortgage Edmonton and What are its benefits?

Purchasing a home is a significant accomplishment, but the initial process of accumulating enough money for a down payment can be a significant challenge for first-time homebuyers. Well, if you are a resident of Edmonton and you lack the cash that you need to make a down payment you might be asking yourself if it is possible to get a mortgage with no down payment at all. Fortunately, there are a handful of treatments that may be right for you.

There is, for instance, something known as a guarantor mortgage Edmonton. A guarantor mortgage allows you to obtain a mortgage without having to make a cash down payment if you have someone willing to guarantee that you will meet your mortgage obligations. Generally, your guarantor is likely to be asked to pass any credit check and must be able to demonstrate that he has enough income to cover both his rent and your potential mortgage payments. It gives the lender security that in case you encounter difficulties in paying your mortgage it will still be paid.

Some of the large banks and mortgage brokers in Edmonton may be able to provide guarantor mortgages, which can help those who are first-time home buyers. Just remember, if you are unable to make the payments, then the guarantor is on the hook. This is because the one willing to assume the responsibility of guaranteeing a mortgage must be someone you fully trust.

The other avenue worth considering is mortgage loan insurance. If you meet the requirements for mortgage loan insurance some of the lenders will offer a no down payment mortgage in Edmonton. High ratio mortgages normally call for this special insurance that safeguards the lenders against potential defaults. Ensure you qualify for mortgage loan insurance from CMHC, Genworth or Canada Guaranty before applying for one.

Either way, compare shop mortgage rates from several Edmonton lenders and brokers. Make sure you find the lowest interest rate for your no down payment loans and the smallest payments to accompany it. It is also important to also adequately plan for all the other expenses that come with owning a property such as taxes, repair and utility bills.