Posted on
December 20/2021By
northwood
Most homebuyers need a mortgage to pay for their property. However, a mortgage won’t cover the full price of the home. You’ll need to put some money towards the purchase price from your own pocket. This is called a down payment. A down payment is usually calculated as a percentage of the purchase price. In Canada, 20 percent is what most home buyers aim for because it means you won’t need to pay for mortgage insurance. Even if you don’t have that much, though, you can still make your dreams of home ownership come true. Here is what you’ll need…
Posted on
September 06/2021By
northwood
Whether this is your starter home or your dream home, buying property can be exciting. After your offer has been accepted, you’ll need to get approval for a residential mortgage. A key factor in securing a mortgage is the down payment. Your lender, though, will want to know where you got the money for your down payment. Therefore, it’s important that you demonstrate the money was not borrowed. Here are some ways that you can prove the source of your down payment and get your residential mortgage approved. 1. Savings and investments Most homebuyers use savings and investment money for…
Posted on
October 07/2020By
northwood
One of the concerns that new home buyers have is about how much they need for a down payment. The truth is that many people don’t have as much as they think to make their homeownership dreams come true. How much you need for a down payment depends on what you currently have saved and what you want to spend on a home. Most people believe that a down payment for a home should be 20 percent. This can leave some would-be homebuyers feeling discouraged, but the truth is that you don’t need a large down payment. While it’s in…
Posted on
August 14/2017By
northwood
With so many new condos and residential developments coming up in Toronto and the GTA, many buyers are looking into buying new builds. The biggest benefit of a new build over a resale property is living in a fully customizable, mint condition home. However, the down payment process on a new build is different than on a resale. The bad news is that a down payment on a new build is a lot more than on a resale. With a resale, the minimum down payment is usually 5%, while on a new build it can be up to 25%. Even though this may be daunting, this down payment isn’t required all at once but can be broken up into smaller payments. While the payment schedule can vary slightly depending on the building company, it often looks like this: 5% with offer 5% at 30 days 5% at 90 days 5%…
Posted on
August 22/2016By
northwood
You’re all set to buy a home. You’re excited and perhaps just a little frazzled. After all, it’s a big deal. But take a deep breath and think clearly about what’s involved, and that includes your down payment. Not thinking about it at all Oddly enough, the first error some potential homeowners make is not focusing on the down payment at all. The correct amount for a down payment is one that’s financially comfortable for you without having to exhaust your entire savings. You need some of those savings in case of emergencies! Leave yourself enough for about six months of living expenses. In case something unforetold happens, you’ll still be able to make a mortgage payment. Not using your own bank account Some people choose to deposit their down payment in a bank account that doesn’t belong to them. If your parents have been helping to manage your finances,…
