

Jennifer Huntley
Sales Representative
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Let's Begin With Mortgage
A down payment is the amount of money that you put towards the purchase of a home. The down payment is deducted from the purchase price of your home. Your mortgage loan will cover the rest of the price of the home. The minimum amount you'll need for your down payment depends on the purchase price of the home you'd like to buy.
If you're self-employed or have a poor credit history, you may be required to provide a larger down payment. Normally, the minimum down payment must come from your own funds. It's better to save for a down payment and minimize your debts.
Calculate Your Down Payment
Example: How to calculate your minimum down payment
If the purchase price of your home is $500,000 or less suppose the purchase price of your home is $400,000. You’ll need a minimum down payment of 5% of the purchase price. The purchase price multiplied by 5%, for a total of $20,000.
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If the purchase price of your home is more than $500,000 Suppose the purchase price of your home is $600,000. Your minimum down payment will be 5% on the first $500,000, for a total of $25,000. On the remaining $100,000, your minimum down payment will be 10%, for a total of $10,000. Add both totals together and your minimum down payment would be $35,000.
Home Buyers' Plan
To help you come up with a down payment, you may be eligible for the Home Buyers’ Plan (HBP). The Home Buyers' Plan allows you to withdraw up to $35,000, tax-free, from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. You have up to 15 years to repay the amounts you withdrew.
Before you sign up for the Home Buyers' Plan, consider:
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if you'll be able to make the repayments
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will withdrawing funds impact your retirement saving
Keep in mind:
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Not making the repayments could end up costing you a lot of money in income tax
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Even though you'll eventually repay the funds, you may still lose out on any growth while the funds are withdrawn