Wednesday, January 13, 2016

Mortgage Down Payment Issues?

First Time Home Buyer? 

Having trouble coming up with your down payment? 

Here is a solution!!

ATB and RBC will lend up to $25,000 over 10 years to invest in an RRSP. 
TD will only lend over 5 years. Scotia will give you an RRSP loan line of credit but we will need to use 3% of the limit as your payment.
So your best offer is ATB and RBC.  I have the best contacts at ATB that also ensures a quick turn around.
They will allow you to keep the RRSP investment for the minimum 90 days required and then withdraw it to be used as the down payment on your home(under the first time home buyers program). These banks do not require you to payout the loan before you withdraw the RRSP. So your loan payment will continue to run for the 10 years and will be included in your qualification for the mortgage. This is a smart way to get your down payment. You save the tax on your RRSP investment (at estimated 30% that would save you $7,500). You don't pay the tax if you withdraw it under the first time home buyers program.

BMO, CIBC will not allow you to do withdraw the money from the RRSP investment, until the loan is paid in full.!

Thank you Pam and Len for the above article.

Amy Wilson
Verico Brokers For Life

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