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,…
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,…
