What is a 103% mortgage?
Posted on October 18th, 2006 by Financial Diva
We have all heard of mortgages where they lend you 100% of the total house purchase price. But a 103% mortgage? This is something that is fairly new where not only will they give you the full mortgage price (meaning no deposit required) but they will also give an additional 3% to cover things like closing costs and moving expenses.
Is there a catch? Well, you do have to have a pretty good credit rating in order to get this. But it can be nice to cover extra expenses for those who don’t have the extra bit of cash. If this mortgage is appealing to you, talk to your mortgage broker about it.
Filed under: Mortgages
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