Downpayment Options

Making the largest down payment you can is always the best idea. The larger the downpayment you make, the more you will save in interest payments in the long run. If you have less than 20% down payment (High ration mortgage), mortgage insurance is required. You are no longer required to have the minimum 5% downpayment from your own funds. You can now use borrowed funds for your downpayment*.

*Insurance premiums increase as well as credit criteria

Non-Borrowed Downpayment

 Savings

This type of downpayment is from your own resources (ie. Savings, RRSP’s) and you must supply verification to the lender of accumulated savings such as a copy of your bank or RRSP statements.

RRSP’s can be a great way to save for your downpayment. The Home Buyers Plan (HBP), which is provided by the Canadian Government, is designed to allow first time home buyers, to withdraw up to $25,000 from your RRSP to buy or build a qualifying home. Click here for more information using your RRSP for your downpayment.

Gifted Down Payment

All or part of our downpayment may come in the form of a gift so long as all of the following conditions are met:

• You’re receiving the gift from an immediate family member
• The lender has verified that the money is a genuine gift by way of written confirmation
• You are in possession of the funds at least 15 days prior to closing

Borrowed Downpayment

If your credit score is excellent funds may be borrowed from credit sources or alternative sources to place a larger downpayment. For more information on 100% financing click here. Homebuyers can get their down payment from borrowed sources that include:

• Personal loans, lines of credit, or credit cards
• Lender cash back incentives
• Unsubstantiated gifts