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,…
Posted on
April 11/2016By
northwood
A leading challenge preventing many buyers entering the home ownership marketplace is their misunderstanding on down payments. Many potential buyers feel that the cost of down payments is too high for their budget. This may mean they wait to purchase a property. But by analyzing down payment options, buyers may find they have more flexibility than they first thought on the road to home ownership. In this article, our expert team will highlight four myths of down payments. Myth 1: A 20% Down Payment is Required One of the most widely disseminated myths concerning down payments is the idea that a 20% down payment is required to complete a home purchase. This simply isn’t true. Within the current Canadian real estate marketplace, buyers can begin the purchase process with a 5% down payment on their new home. To avoid having to pay insurance fees, a 20% down payment is required,…
Posted on
January 15/2016By
northwood
Saving for a down payment can be daunting for first-time home buyers, but breaking it down into small steps can make the process less daunting. A home is a great investment, and there are many ways to save for this big purchase. A potential home buyer should try to save 5-20% of the value of the home. Here are some helpful tips for saving for your dream home. Let Your Money Grow Hold your savings in a fund where they can accumulate the highest possible amount of interest. Good examples of accounts include: Canadian Tax Free Savings Account (TFSA) Guaranteed Investment Certificate (GIC) Mutual Funds RRSP High Interest Savings Account Pay off Existing Debt It’s hard for your money to grow when you owe–and are paying interest. In fact, those who have too much consumer debt will not qualify for a mortgage. Before starting to save for a down payment,…
Posted on
June 26/2015By
northwood
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…
