How To Make Your Down Payment

It’s the reason you clip coupons and choose the office coffee rather than hitting the local coffee shop on your way to the office. It’s the reason you’ve become more familiar with the creatively cost-efficient “staycation” rather than a lavish vacation, and the reason you carefully consider each purchase before swiping your card. That’s right, it’s time to discuss the down payment, and more importantly, discuss exactly what is a down payment?

For those of you who have done your research, you know that when it comes to your down payment, you have a few options to consider. The down payment is the part of the purchase price that you come up with in advance of getting your mortgage, and the amount of your down payment is something you should have set before beginning the search for your dream home.


Conventional Down Payment

If you have a conventional down payment, this means that you have saved enough to put at least 20% of the purchase price down for your down payment. The benefit of this option is you do not need to be insured.

Low Down Payment Insured Mortgage

You are able to put as little as 5% down on your new home, but this option requires you to obtain Mortgage Default Insurance. This is a one-time premium that you pay as part of your closing costs.

Using Your RRSP for Your Down Payment

Did you know that under the Federal Governments Home Buyer’s Plan, first time home buyers are able to use up to $25,000 per person is Registered Retirement Savings Plan (RRSP) for their down payment? As long you repay within 15 years, the withdrawal is not taxable.

If you would like more information on what option might be best for you, please feel free to reach out to us and we would be happy to schedule a consultation with one of our Buyers Specialists. As always they are free and there is absolutely no obligation.

Pilon Real Estate Group Featured Listings: Click here! 

We Keep You Covered When You Buy a Home With Our 12 Month Buyer Protection Plan!

Details at:

Free Home Search With Proprietary MLS Access – New Listings – Faster Updates And More Accurate Data!

Find Homes Now:

Find Out How We Get Our Sellers More: Click here! 

RE/MAX Hallmark Pilon Group Realty
Direct: 613.909.8100

Leave a Reply

Related Posts


Enter your keyword