Condo Buying – Finding Your Down Payment May Be Easier Than You Think.
For many first-time homebuyers, saving the 5 per cent downpayment is one of the big obstacles to home ownership, especially if you’re paying rent, paying down student loans, and trying to live a life. Here are some programs and tips that can give your downpayment a boost – to get you into your home faster:
- The federal Home Buyers’ Program (HBP) lets first-time homebuyers 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.
- A financial gift from a parent or blood relative can be used as a downpayment. 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.
- 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 downpayment through a loan or unsecured line of credit.
- If your dream home is out of reach, look for a starter home. Use today’s low interest rates to start hammering down your mortgage, then watch for the opportunity to get the home of your dreams – using the equity and credit rating you’ve been building!
This entry was posted on March 3, 2014 by kevinbakerrealestate. It was filed under Buyers, Kitchener Waterloo, Loft Style, Sellers and was tagged with condo buying, condo selling, condo units, condo value, downsizing, first time buyer, kevin baker, kitchener, ktichener, loft, loft apartments, loft buying, loft selling, mortgage brokers, real estate, remax, sales reps, twin city realty, update, waterloo region.