Posted onJune 26/2015
How many toasters does one couple need? The answer is probably one. If you have a close friend or family member who is tying the knot, you may be unsure what to get them. Nowadays, couples have been renting a home together for a few years prior to getting married. They already have toasters and other appliances so when it comes to setting up their registry people are choosing a different path: a down payment for their first home.
It’s likely that you can’t pay for your friend’s dream house altogether, but you can get them one step closer to home ownership. This is called crowdsourcing or crowdfunding, and it’s becoming a less costly way to get newlyweds into their first home faster than before.
Gifting a Down Payment:
If your friends haven’t registered anywhere and are thinking of it, talk to them about how crowdsourcing can help bring them closer to home ownership. Many wedding guests are eager to give monetary gifts, and there are many websites that can make it easy for them to accept digital gifts. Whether it’s a cheque or a payment made VIA website that gets deposited directly in to a savings account dedicated towards a down payment, this route is far more beneficial than your average gift of china and silverware.
For those getting hitched:
Sites like Hatch My House, Feather the Nest, and Down Payment Dreams make it easy for you to create your down payment registry. Most wedding gift down payment sites operate through PayPal and are fast and simple to set up. You can allow your guests to contribute any amount they’d like, or you can set a suggested amount for each guest.
It’s important to keep in mind that your older relatives may not be so keen or understand how to use the Internet to send you a wedding present, and some people simply like the idea of giving personal gifts. Either way, remain positive and appreciative of any and all gifts coming to you for your wedding!
There are fees involved with any crowdsourcing you will do but these fees are pretty standard (5-8% of what you raise), but this will still leave you with an ample down payment for your dream home.
The CMHC has restrictions that apply when you are gifted a down payment. For more information, contact us at Northwood Mortgage.