Are you a home buyer in BC looking to purchase your next home but do not have a down payment, we’ll show you exactly how you can get one. Currently, the minimum down payment required in Canada is 5% of the purchase price, which can still be a substantial amount of money for those who don’t have that available. For example, if you’re looking to buy a home at $300K, you will need a minimum of $15K for down payment and some left over to cover the closing costs etc.

So, here are some creative ways to come up with that down payment:

1. Savings – If you have savings, great! You’re all set.

2. RRSP – As a First Time Buyer in Canada, you can withdraw up to $25K from your RRSP under the BC Home Buyer Plan.

3. Cash Back – We have a couple of lenders that do offer “cashback” mortgages up to 5% of the purchase price. The cashback can be used towards your down payment, closing costs or any other purpose. Although the interest rate is higher on the cashback mortgage, this option is sometimes preferred when buyers want to take advantage of a property for sale when they don’t have cash on hand.

4. Gift – You never know until you ask! Ask a family member if they will help gift a down payment towards the purchase of your next home and you may get a generous family member who is willing to help, all you have to do is ask.

5. Borrowed Down Payment – If you have a Line of Credit with an attractive interest rate, you can also advance the funds from your line of credit and use it towards a down payment to purchase your first home.

For more information on down payments in BC, please contact us.