| | #10 Downpayment | | | To obtain a conventional mortgage , home buyers are required to put down at least 25% of the purchase price or appraised value (whichever is less) as a down payment. If you don't have the necessary time or resources to save a full 25% down payment, you can choose a high-ratio mortgage and buy a home with no down payment at all. This option is called a high-ratio mortgage and it requires you to purchase default insurance. Whether you choose a conventional or a high-ratio mortgage, one thing is certain: the larger your down payment, the more you save in the long run. A larger down payment reduces the amount of your monthly principal and interest payment The RSP Home Buyers' Plan (HBP) lets a first-time buyer withdraw up to $20,000 from RSPs for a home purchase. The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn. If the full $20,000 is withdrawn, the minimum annual repayment is $1,333 . If less than the minimum is repaid in any particular year, the balance is added to the taxpayer's income. |
| |
|
|
