Sure it is and it can be done in many ways. Here are the three most common:
Named after its place of origin, this technique is illegal in Canada. Basically, you find a seller willing to artificially inflate the sale price of a home above fair market value, then kick you back the difference. For example, say the fair market value of a home is $270,000 and you have no down payment. You enter into a written agreement with the seller to buy the home for $300,00 with either a secret side agreement that when the deal closes he’ll kick you back $30,000, or a fake $30,000 deposit shown on the Offer to Purchase. Either way, the phantom $30,000 in essence becomes your down payment, so it appears that you have put 10% down. The lender thinks he is financing $270,000/$300,000 or 90%, but in essence, he is financing 100% of fair market value! Lenders try to prevent such fraud in two ways. Firstly, they ask for confirmations of down payment by both checking your bank account balance and obtaining a copy of the deposit cheque. Secondly, they obtain an appraisal to assess market value, though most appraisers, usually out of apathy, will just fudge their numbers to make it appear that the home is actually worth what the Offer to Purchase reads.
Some sellers will lend you the money you need for the down payment by registering a second mortgage on the house at closing. For example, say George wants to buy Saddam’s palace for $1,000,000. George has $100,000 down, but George’s bank will only lend him $850,000, leaving him short $50,000. So Saddam, wanting to sell the damn palace, lends George the $50,000 he is short by registering a second mortgage for this amount on closing. However, one has to wonder why a vendor would be willing to lend his own money to liquidate a property, unless there is something suspect going on.
Some lenders offer 100% financing programs but charge you high interest rates and add exorbitant fees to the mortgage for the privilege. Call Andre can offer you this type of financing if you really need it, buy you are best off begging, borrowing or stealing the money and coming up with at least 5% down.