Flexible down payment Options

The main reason many renters feel they can’t afford to purchase a home has to do with saving for a down payment. But there are many solutions available today that can help first-time buyers with their down payments.

Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.

Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. The only catch, however, is that you must remain with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.

Under the RRSP Home Buyers’ Plan, first-time homebuyers can withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

And if there’s a couple making a home purchase together, they can each withdraw up to $25,000 from their RRSPs.

Did you know…

You can find out your Financial Fitness Score to help discover how financially fit you are courtesy of Genworth Financial and the Canadian Association of Credit Counselling Services (CACCS). This new Financial Fitness Score, the first of its kind in Canada, is available online at www.financialfitness.ca. The score is based on attitudinal and behavioural questions that were developed from financial fitness data collected in a survey sponsored by Genworth Financial and CACCS. The tool helps determine how well you’re managing your finances and provides useful information that is based on your specific fitness level.

For Mortgage Rate, mortgage calculator and a vast amount of mortgage information check out my website – www.mypowermortgage.com

If you have any questions please don’t hesitate and give me a call.

Best regards,
Alan Brown
on 778 232 1063

Click here to view my video presentation

Speak Your Mind