Mortgage Down Payment Options
One of the biggest challenges that most homebuyers face is coming up with enough money for a down payment.
A mortgage down payment is the money you commit to the purchase of a property. It’s expressed as a percentage of the property price, with 5% being the minimum requirement. You may have heard of some lenders allowing lesser down payments, however, these are special circumstances and it is prudent to pay special attention to the details on these offers.
The mortgage down payment is one of the factors that determine your maximum purchase price. Assuming your income, credit history and affordability are in line, the larger your down payment, the higher the maximum purchase price you qualify for.
Traditional Mortgage Down Payment Sources:
- Personal Savings
- RRSP (under the RRSP Homebuyers’ Plan rules)
- Proceeds from the sale of another property
- Gift from immediate relative
Non-Traditional Mortgage Down Payment Sources:
- Borrowed funds
The borrower must have good credit and adequate income to be able to borrow funds for the mortgage down payment
Using non-traditional mortgage down payment options will result in higher default insurance premiums
For a free, no obligation consultation to discuss your mortgage options please contact me by phone @ 204-371-9284 or email @ email@example.com.