Down Payment explained
Thinking of purchasing a house and want to know more about down payment.
Minimum down payment is 5% on the first $500,000 and for properties above that you will need 10% for the purchase price above that. example: you are purchasing a home for $575,000 The first $500,000 will be 5% or $25,000 for the addition $75,000 you will need 10% or 7500 for a total of $32,500.
Purchase price of 1 mil and more, call for details.
So where can down payments come from;
1. Your own savings is always best, must show a 90 day history and an accumulation of funds deposited into an account. Any large sums of money will need to be proven.
2. A gift from immediate family member - a gift letter will need to be signed and you will need to show proof of funds in account. Gift letter must indicate that no part of the funds need to be repaid.
3. RRSP - You can pull funds from your RRSP, under the First time Home Buyers Plan. To make sure that you qualify for this program, check the link under our resources for clarification.
4. Borrowed down payment - Yes, if you qualify, you could potential borrow funds and purchase a home. There are a few rules around borrowing your down payment.
Information in this article is as of date published.