I thought this article could prove to be useful to many people. This was emailed to me by Bryan Guertin from Mortgage Intelligence.
Getting that 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!
Talk to us today – to ensure that you get off on the right foot in your home buying journey!
Brian can be reached at 905-842-4320.
CENTURY 21 Miller Real Estate Ltd.
Brokerage Independently Owned and Operated
467 Speers Road, Oakville, ON L6K 3S4