Mortgage Down Payment – 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:
- 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.
- 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.
- 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.
- 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!
If you have any questions regarding down payments or Mortgages in general feel free to give us a call. We are happy to help
This entry was posted on March 3, 2014 by kevinbakerrealestate. It was filed under Buyers, Local Kitchener Waterloo, Random thoughts, Sellers and was tagged with Bank of Canada, banking practices, condo, first time home buyer, full time realtor, home buying, home value, kevin baker, Kitchener waterloo, kwrealestatelife, loft, lofts in kitchener, market update, Mortgage News, real estate, real estate investing, Remax, waterloo ontario.