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:
1.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 repayment plan.
2.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.
3.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!
Article courtesy of:
Cam Brown
Accredited Mortgage Professional
(403) 650-5509
INVIS “Canada’s Mortgage Experts”
www.mortgagealberta.ca
cambrown@invis.ca
