Mission: Finding a downpayment
Published on July 01, 2020 by MultiPrêts MR
One of the most common and stubborn beliefs among potential buyers is that they will never be able to save enough money for their downpayment and the different costs that come along with buying a property.
It is important you know there are programs designed especially to help first-time buyers gain access to homeownership.
Here are a few ways to accumulate enough money to meet the requirements of most lenders:
- A member of your family could want to give you money to help you buy your first property. In that case, you will need a document proving it’s a gift and not a loan.
- Sell something. The money you get when selling a car, for example, can be added to your savings to help you reach the total you need for your downpayment.
- Borrow on the value of one of your assets. This option is only possible if you can still qualify for your loan with that new liability.
- Use your current RRSPs or take out an RRSP loan to take advantage of the HBP program (Home Buyer’s Plan). In some cases, your spouse and you could maximize your RRSPs up to the cumulative amount listed on your tax notice; a great way to increase your downpayment while taking advantage of a tax deduction (maximum $25,000 per person).
- Ask the sellers for a balance of sale financing. If they do not need cash immediately, they may be willing to make this type of deal with you. This would help you reduce the amount you need to save for your downpayment.
Do you need more information on this matter? Contact us!