How to get a down payment for a mortgage
One of the more challenging aspects of buying a home, especially for first-time homebuyers, is obtaining a down payment for a mortgage. In the Vancouver, BC area, this is particularly challenging due to the high cost of real estate. However, there are a number of possibilities that can help you to get your down payment mortgage for buying a home.
-Home Buyers plan — this program allows a borrower to borrow up to $25,000 from their RRSP, and can be used for any purpose, including down payment. The loan needs to be paid back over the course of 15 years.
-BC home partnership plan — introduced in 2016 by the BC government, the home partnership plan helps first-time home buyers by matching their down payment contribution dollar-for-dollar. It is a loan that is interest-free for 5 years, and then needs to be either repaid or financed at prevailing interest rates.
-CMHC insurance — Mortgage insurance is most commonly called CMHC insurance as CMHC is the most popular provider of mortgage insurance in Canada, but there are also two other providers in Genworth and Canada Guaranty. This helps buyers to get a mortgage with as little as 5% down payment.
Ggifted down payment — if you don’t have the down payment, but you have a relative or other party that wants to give you money, then you can still use this money for the down payment to buy a home.
Borrow the down payment — if you have a line of credit, you may be able to use it for the down payment to purchase a home.
There are lots of ways that can help you to raise the down payment to buy a home. With the help of a good mortgage broker, you should be given good directions on a way to succeed in fulfilling this requirement for buying a home.