Getting a down-payment might be easier than you think.
For many first-time home buyers, saving the 5 per cent down-payment 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 down-payment a boost – to get you into your home faster:
The federal Home Buyers’ Program (HBP) lets first-time home buyers 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 down payment. 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 down-payment 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!
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Rasha Ingratta & Mortgage Associates
By Mortgage Intelligence
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