Here’s an article from The Star on why you should save in a TFSA instead of an RRSP when just starting out. https://bit.ly/35DxIC4
As a mortgage professional, I have helped many first-time home buyers go through the process.
I share my experience and knowledge with you so you can make informed decisions every step along the way, from the moment you decide to buy your home to the moment you move in.
Did you know the size of your down payment influences three things?
1. Your down payment influences the home price you can afford.
2. Your down payment shapes the size of your mortgage and monthly payment.
3. Your down payment determines the amount of mortgage insurance you pay.
The minimum down payment in Canada, on homes up to $500,000 is 5%.
Homes priced between $500,000 and $1M now require a 5% down payment on the first $500k and 10% on anything after that up to $999,999.
Acceptable sources of funds for down payment include:
Funds in savings: This comprises money that has been deposited in a depository institution or other investment company for a minimum period of 90 days.
Funds on deposit are subject to verification through bank statements for the past three months.
Gifts from family members: Monetary gifts from family members for the down payment and/or closing costs are acceptable in most cases -
as long as there is no requirement for repayment. The lender will need a gift letter as proof.
Stocks, bonds, mutual funds, TFSA, etc.: These cash equivalent investments are acceptable for a down payment. They must be validated through statements and show a three-month history.
RRSP: One of the most popular sources for a down payment is the RRSP because other than at retirement, it is one of two times you can take money out of your RRSP as a first-time home buyer without penalty.
Call to discuss. Together we can review all your possible options and create a mortgage financing plan that works for you.
Glen Estabrooks
902.489.4898
E: glenestabrooks@mortgagegroup.com
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