• ID-100156093In today’s housing market, with average prices inching toward $600,000 in some cities, saving for a down payment can be a real challenge. If you’re a first-time homebuyer just starting out and trying to get a foothold in real estate, even saving the minimum 5% may seem out of reach.

    Traditionally, none of the allowable sources for down payment were easy to achieve. If you couldn’t save the required amount, you could make a withdrawal from your RRSP (if you had enough and didn’t mind impacting your retirement goals), get your parents to give you the amount with no expectation of repayment (lucky you to have parents like that!), or use your own sweat equity to cover up to half of the down payment (if you were capable of doing renovations and repairs yourself).

    But fortunately, there are now more attractive alternatives to consider. As your local mortgage advisor, I have access to specialized products from Canada’s leading mortgage insurers that help put down payments within reach. Instead of insisting on traditional sources, these mortgage loans allow for more flexibility. Acceptable down payment sources include personal loans, lines of credit, credit cards, lender cash back incentives, gifts from anyone who is at arm’s length from the transaction (doesn’t have to be from a relative), and 100% sweat equity.

    Of course, if you borrow the amount, those payments must be included in your Total Debt Service calculations. And you’re not allowed to use builder incentives or builder loans to cover your down payment. You also need to have a relatively clean credit record.

    By taking advantage of these innovative new mortgage products, many people are able to achieve home ownership much earlier than would otherwise be possible. If you’re interested in exploring the possibilities, give me a call. I’ll sit down with you and provide a no-cost, no-obligation analysis of your situation and recommend a solution that works best for you.

    To your Wealth!

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