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Down Payments

You have been thinking of buying your first home and as you look at different properties you might be wondering “How much can I afford?” A Libro Coach will help you answer this question and many more!

An important part of this conversation is the amount you are planning to use as a down payment for your home purchase.

The higher the amount of the down payment, the faster you will be able to achieve mortgage free prosperity.

Here are three things to consider about down payments. Talk them over with your Libro Coach to see how they apply to your plans to own a home.

The Home Buyer’s Plan & your RRSPs

Did you know that you can use RRSP dollars to add to your down payment total? You can access your RRSPs tax-free if you participate in Canada Revenue Agency's (CRA) Home Buyer's Plan. You may be eligible to withdraw up to $25,000 from your RRSP. Your spouse or partner can also make a maximum withdrawal from their RRPS plan. Combined you could have $50,000 ready for your first home! For complete details on the Home Buyer’s Plan visit the CRA site.

Land Transfer Tax Refund

Take advantage of Ontario’s land transfer tax refund program. First-time home buyers may be eligible for a maximum refund up to $4,000 of the land transfer tax paid on their home purchase. For more information visit the Ontario Ministry of Finance site.

How Much Do I Need For My Down Payment?

If you are a permanent Canadian resident you can make a minimum 5% down payment of the home purchase price. If you have less than 20% of your future cost price to use for your down payment, you will need to purchase mortgage insurance. To find out more about costs and conditions, please visit the mortgage provider sites: Canadian Mortgage and Housing Corporation (CMHC) and Genworth Canada.

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