If you’re in the market for a house, the down payment is probably a heavy weight on your mind. The good news is that there are ways to alleviate that weight. Here are just a few tips and tricks for lowering and even eliminating your down payment costs.
Browsing Tag
home down payment
So, you are looking for a savvy way to put a down payment on a new home – where do you look first? Purchasing a home for the first time can be a big deal – a really big deal. Not only will this be the biggest purchase of your life, but it will also be the biggest decision of your life. If you have just gotten married, or you are thinking about starting a family, purchasing a home can be a great way to get some roots in the ground and start thinking about the future. When it comes to real estate, purchasing a home is a great place to put your money. However, if you don’ have the money for a down payment, there are a number of different options. Here are some down payment options for first-time home buyers.
One great place to start is with relatives. Chances are that if you just got married, your new extended family would be glad to chip in on a down payment for a new home. In fact, instead of setting up a wedding registry, you could set up a down payment fund that friends and family members can put money into. When it comes to getting the financing you need to purchase your new home, this can be a great way to get the starter home of your dreams.
Another place to look for loans is with tax refunds. If you work a steady job and have a decent annual salary, you could stand to make a pretty hefty tax refund at the end of the fiscal year. In fact, if your spouse makes the same amount of money, your combined tax refunds could be big enough to set yourselves up with a pretty handsome mortgage and your first home. Just make sure, though, that the down payment is big enough to make the monthly mortgage payments manageable.
What Is The First Time Home Buyer’s Plan?
If you are planning on buying or building your first home and you want to use money from your Registered Retirement Savings Plan (RRSP) to use for your down payment and other house expenses, instead of making a regular withdrawal and facing the tax consequences, you can take advantage of the First Time Home Buyer’s Plan (HBP). When you take advantage of the HBP, what you are essentially doing is borrowing money from yourself that will eventually need to be paid back into your RRSP.
Who is eligible?
In order to be eligible, you must enter into a written agreement to buy or build a home. The home must be your principal place of residence, and you must be a Canadian resident. The most you can withdraw is $25,000, and you can either withdraw it all at once, or you can make a series of withdrawals throughout the same year. If you plan on buying a house with your spouse, your spouse can also take advantage of the HBP.