Who should pay your Down Payment
The Government of Canada offers programs and services to help you purchase, renovate, and adapt your house or
condominium. For many Canadian first-time home buyers, saving for the down payment is one of the biggest obstacles to home ownership, especially if you’re paying rent, paying down student loans, and trying to live a life. Buying or building your home can be one of the largest investments you will make during your life. Here are some programs and tips that can give your down payment a boost , to get you into your home ownership.
Tax Free Savings Account : A tax-free savings account (TFSA) lets you set money aside in eligible investment vehicles and watch those savings grow tax-free. You can use the savings to purchase and renovate a house. For more info visit, http://www.servicecanada.gc.ca/eng/lifeevents/buying_a_home.shtml
An Interest-Free Loan: Under the Affordable Home ownership program (AHP). Every region in Ontario has been allocated a specific amount of funding to assist low to moderate-income rental households to purchase affordable homes through interest free down-payment assistance loans. It will be up to each municipality to determine the value of the loan for each purchaser, in accordance with mandatory program requirements
Down payment Assistance: This program is available for first time home buyers in Canada. Check with your region or a Canadian Realtor. You can find more information at Professional Real Estate Investors Group (PREIG) Canada www.preigCanada.com and World Wealth Builders www.WorldWealthBuilders.com/live.html
Home Buyers Plan: The federal Home Buyers’ Program (HBP) lets first-time home buyers 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 a repayment plan.
The Home Buyers' Plan (HBP) for Disable Relative: is a program that allows you to withdraw funds from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for a related person with a disability. You can withdraw up to $25,000 in a calendar year.
Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year. Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year. For more info visit http://www.servicecanada.gc.ca/eng/lifeevents/buying_a_home.shtml
Gifted Down payment program: A financial gift from a parent or blood relative can be used as a down payment. 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. For more info visit http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_003.cfm
Trade in: sometimes the builders can offer you some trade in incentives in exchange for your down payment. For example, got a beater car worth at least $5,400? You can trade that in as a down payment on a brand-new Vancouver condo. That’s the pitch by in GasTown, a new 61-unit condo development at 150 East Cordova, which launched an innovative program banking on condo buyers’ willingness to go car-free in exchange for home ownership in Vancouver’s sky-high real estate market. Car for a Condo lets car owner’s trade in their vehicles towards a condo unit in the gritty but fast-gentrifying neighborhood just west of Main.
Loan from Parents: 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 down payment through a loan or unsecured line of credit. Check with your local credit union.
Cash-back down payment mortgage
In many provinces, lenders that aren’t federally regulated (like credit unions) can still offer cash-back down payment mortgages. The few that actually do will give you 5 per cent cash to use for your down payment. You then need to cough up only your closing costs, which include legal and inspection fees, land transfer tax and so on.
To learn more about investing in Canadian Real Estate, attend LIVE training in your city. For more info visit www.WorldWealthBuilders.com/live.html
If your dream home in Canada is out of reach, look for a starter home or multi units or house with a legal basement apartment. This is very general information for education purposes only. Consult your Realtor and Real Estate lawyer for more details.