10 Places to Get Your Mortgage Down Payment
The money. Up front! In Canada you need a minimum 5% down payment from traditional sources in order to buy a home.
What does your down payment affect?
• How much you can afford to spend on your home – with every dollar you put as down payment, your mortgage payment gets smaller
• Your total monthly payment
What is the minimum down payment?
• 5% of the total purchase price
Where Can Your Down Payment Come From?
Your Money
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Money you have in a Chequing or Savings account
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TFSA, RRSP or other financial securities (First Time Home Buyers can take up to $35,000 out of their RRSP tax free)
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Sale of existing property
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Sale of any personal property with receipt (vehicle, machinery, etc)
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Any money you have available from the sale of any crap you no longer need or toys you no longer use
Other People’s Money
GIFT
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A non-repayable gift from a related family member (parent, sibling, grandparent, aunt/uncle)
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Requires the gifter to sign a letter stating amount of gift and that the gift is not a loan
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Gifted funds are very common as parents help their children get started in the housing market.
First Time Home Buyer Incentive (FTHBI)
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Federal government down payment program – interest free, shared equity program
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Please click HERE to access full FTHBI program details