Mortgage Down Payment Options:
In Canada, thanks to the three mortgage insurers, CMHC, Genworth or Canada Guarantee you have the option to a high ratio or low down payment for a little as 5% of the purchase price of the home.
So if you have come to me and have been pre-approved to purchase a home for $400 000.00 you will need a min. down payment of 5% which is $20 000.00. The home must be owner occupied to qualify for the minimum 5% down payment amount. The 5% can come from a number of different resources:
1. RSP - you can use a RSP for your down payment - if you are a first time home buyer, you have access to the full RSP up to $25 000.00 tax free or if you have purchased a home before you can use your RSP less approx 35% that must be paid in tax on it (tax brackets range so ask your RSP provider how much money you will be taxed)
2. The money can come from your savings or cheqing account or a Tax Free Savings account - we will need to see a 90 day banking history to verify any lump sums in the account before we can confirm the funds can be used.
3. you can have the funds gifted from an immediate family member. I will provide a gift letter for your family member to sign and get proof of the funds deposited into your account for verification.
4. Borrowed Down Payment or Flex Down - Subject to qualification rules -( call me, 780-919-0475, if this is something you would like to qualify for)
5. Any number of scenarios can be accepted for your 5% down,
contact Amy Wilson - Yourmortgagegirl,
The same options also apply for a second home purchase, rental properties or vacation properties but the down payment rules change in most cases to being a minimum of 20% down - contact me to determine what down payment you will required to have for your next home purchase.