Getting That Downpayment: It Might Be Easier Than You Think!
Monday, March 3rd, 2014For 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
of excitement that takes place when you buy a home that you forget that you are purchasing not just a house, but a community. And even the greatest house in the world is no bargain if the community isn’t attuned to your lifestyle.
you” home, you’re thrilled knowing that it is going to be completely yours; you’ll be able to do exactly what you want with it. You can renovate it completely or paint it in the colors you like. You can get it fitted with the latest appliances or install a custom closet for all those clothes. Still, there are a few things you should keep in mind before you begin to search for your perfect home:
take our word for it. Read on to hear what authority figures have to say.
since so many Canadians are not covered by workplace plans. Over the long term, an investment property that is fully paid for can be a great source of income for retirement. Rental income typically pays for most or all operating expenses (ie mortgage payment, property taxes, upkeep) while property appreciation has often out performed stocks and bonds over the long term.