Is sourcing of down payment for purchase of your home worrying you? Canada first time home buyers is here to help you.
It guides you to the Government of Canada program that helps you to purchase, renovate, and adapt your house or
condominium. Canadian first time home buyers educates you about various offers and incentives of Government of Canada.
For many Canadian first-time home buyers, managing the down payment is a major obstacle to home ownership.
Who pays your down payment
Adding to problems of those paying rent or clearing student loans, finding down payment is difficult. Buying or building your home can be one of the largest investment in your life time. Canadian first time home buyers have solutions for such clients. Here are some programs and tips that can give your down payment a boost. Canadian first time home buyers can facilitate your home ownership.
Who should pay your Down Payment
Tax Free Savings Account
A tax-free savings account (TFSA) lets you set money aside in eligible investment vehicles.It helps you 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
Under the Affordable Home ownership program (AHP), effort has been made to help everyone, many region in Ontario has been allocated a specific amount of funding. This will assist low to moderate-income rental households to purchase affordable homes. This funding will come through interest free down-payment assistance loans. It will be left to each municipality to determine the loan amount. The municipality will decide 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.Flipping4Profit.ca
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. And they will have to pay those funds back, of course, on a repayment plan.
The Home Buyers' Plan (HBP) for Disable Relative
It 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
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.
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.Flipping4Profit.ca
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.