Here’s How You Can Buy a House with No Down Payment
Buying a house requires a down payment, much to everyone's worry.
Even the smallest percentage of a down payment for a home would end up being a big amount that not everyone can afford.
Don’t fret, though! What most people do not know is that you can actually buy a house without having any sort of down payment. If you are interested in doing so, just keep on reading to learn more about it.
Buying a Home with No Down Payment
There are plenty of ways to purchase a home with no down payment. This does not mean you get to completely forgo this part of the payment. Rather, it does not need to be paid initially. Below are some of these options that allow you to do this:
Borrowed Down Payment Program
This option is perfect for those with excellent credit history. If you have not saved even a little bit for your down payment, but have been paying your bills diligently and with assets, too, then you are in luck.
This option allows you to not only get a mortgage for your dream home but also borrow the down payment for it. This will allow you to build enough funds for you to purchase your home without any down payment. However, this offering is very strict and will only be useful if you have an excellent credit history.
RRSP’s Home Buyer’s Plan Program
For first-time home buyers, the government gives you an option to use part of your RSSP to use or help for the down payment of your home. The max amount you can borrow as a part of the Home Buyer’s Plan would be $35,000 per person—up to $70,000 for couples.
The best part about this option is that the amount would be tax-deducible at the end of the year. This means you can just use the $35,000 tax refund to pay it back to your RRSP. Just make sure that this is something you are willing to do and it is worth it.
Insured Mortgages
The new trend today is that there are now various types of mortgages out there. For all your needs and situations, there are different options that will help you. An insured mortgage is a great option to help you get your dream house.
While this is not completely free of down payment, it allows you to pay off as low as 5% for your home’s down payment. This is very useful as it helps you to only shell out a smaller amount. However, to make up for this, the mortgage premiums will be higher, so you need to prepare for that too.
Other Government Programs
Make sure to always check other options that may be available, which you may not be aware of. Check with both your provincial and the federal government to know what may be available to help you.
THE BOTTOM LINE
Saving for a down payment for your home may be stressful or difficult for you. However, you can always explore these options mentioned above. If you are worried about not being able to purchase your dream home, then it is best always to check all options available, and you should have your own house soon.
Are you a first-time homebuyer in Canada? Level Up Mortgages can make the process easier for you. You don’t have to worry about not understanding how mortgages work or getting your own house. See what you qualify for and contact Paul to get your pre-approval.
See what you qualify for or contact Paul to get your pre-approval.
Paul Davidescu (www.levelupmortgages.com)
Level Up Mortgages
604-809-3188
paul(at)levelupmortgages.com
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