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Down Payment Options for Homeownership

on 19 February 2014

Thinking about getting into the real estate market, but not sure what you will need for a downpayment.

The good news is it doesn’t take much. In fact your downpayment can be as little as 5% (default insurance premium will apply).

For example on a home that costs $350,000.00 you would need $17,500.00.

Of course, the larger the downpayment you have to put down on a home, the less of a mortgage you will require.

Examples of downpayment
Personal savings
  • Review your chequing and savings accounts and Tax-Free Savings Accounts, Guaranteed Investment Certificates (GICs), term deposits, stocks and mutual funds.
Registered Retirement Savings Plans (RRSP)
  • Under the federal government's Home Buyers' Plan, you and your spouse or common-law partner may be allowed to withdraw up to $25,000 each from your RRSP.  To qualify you cannot have owed a home in the last 5 years and you will be required to repay your RRSP, in equal installments, over 15 years.
Gifted downpayment
  • An immediate family member may gift you all or a portion of the downpayment. Must be non-repayable and a gift letter must be signed.


Take Action on Downpayment
  • Take the time and review your monthly expenses, and begin budgeting to set aside your downpayment.
  • Think about a monthly goal and set up a pre-authorized bi-weekly (to coincide with payroll) or a monthly debit from your account to go into a separate savings account or RRSP.
  • Also, if your employer offers payroll deductions for Canada Savings Bonds think about purchasing some.
  • Do you belong to a Group RSP plan that would allow you to contribute and pull out funds under the governments Homebuyers Plan?


To learn more about your downpayment options, please contact our office.

Vancouver Mortgage Brokers 988 Beach Ave, Vancouver BC

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