• Allowed to withdraw up to $35000 (new March 19, 2019) from their RRSP to fund the down payment of a new home. Couples can access this amount each.
• Money is available tax-free but needs to be repaid within 15 years
• Your money needs to be in your RRSP at least 90 days before it is eligible for this program
Gift from family
31% of homebuyers source at least some of their down payment from a family member. It has also become common for parents to buy a home WITH their children. Typically a down payment needs to come from an arms length family member (this is usually a parent) and cannot be required to be paid back. Basically, it has to be a true gift, not a loan.
Some of our clients take advantage of what is commonly called a "zero-down payment mortgage". It is a fancy way of saying that you CAN borrow the down payment. These clients use a credit card or line of credit for the funds for their down payment. However, in this case it is important to note that this will be accounted for in the stress test so you would need to have the income to show that you can afford the home you purchase and repaying back the borrowed funds.
If you already own a home then we can often refinance it an pull out equity to use for a down payment on your next home, investment property or cottage. In some cases we may be able to strategically use specialized products such as a Home Equity Line of Credit (HELOC) or reverse mortgage for the purpose to keep the payments low to aid in qualification for the next property.
Sell your Car
This is another one people don't think about but if you live in the city and walk everywhere anyways then maybe you have a down payment just sitting in your driveway!