Getting That Downpayment

August 22, 2018 | Posted by: Cam Brown


GETTING THAT DOWNPAYMENT: It might be easier than you think! 

For many first-time homebuyers, saving the 5 per cent downpayment is one of the big obstacles to home ownership, especially if you're paying rent, paying down student loans, and trying to live a life.  Here are some programs and tips that can give your downpayment a boost – to get you into your home faster:

  1. The federal Home Buyers' Program (HBP) lets first-time homebuyers withdraw up to $25,000 each (or $50,000 for a couple) tax-free from their RRSPs.  You'll need to pay those funds back, of course, on a repayment plan over 15 years.
  2. A financial gift from a parent or blood relative can be used as a downpayment. You'll need to document in writing that the funds are a gift and that you are not required to pay the money back at any time.
  3. A parent or grandparent could also provide a loan with a modest interest rate and reasonable expectations for loan repayment.  Or you could look at borrowing the downpayment through a loan or unsecured line of credit.
  4. If your dream home is out of reach, look for a starter home. Use today's low interest rates to start hammering down your mortgage, then watch for the opportunity to get the home of your dreams – using the equity and credit rating you've been building!
  5. There are also  'no downpayment programs' that you may qualify for.  Do you have a strong credit rating and a good job history?  If so, you could be a candidate.

Talk to me today – to ensure that you get off on the right foot in your home buying journey!  

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