01/08/2023
In Canada, there are several sources that may be acceptable for a mortgage down payment:
- Personal savings: This is the most common source for a down payment, and lenders generally prefer that the funds have been saved over a period of time.
- Gifted funds: You may be able to use gifted funds from a family member or close friend for your down payment.
- RRSP withdrawal: Under the Home Buyers' Plan (HBP), you can withdraw up to $35,000 from your RRSP to use as a down payment on a home.
- Sale of assets: If you have assets that you can sell, such as stocks or a second car, you may be able to use the proceeds towards your down payment.
- Down payment assistance programs: There are various programs available that may provide financial assistance for a down payment, such as the First-Time Home Buyer Incentive or the Home Buyers' Plan.
- Borrowing: In some cases, you may be able to borrow the down payment from a lender or financial institution. However, this option can be risky and is generally not recommended.
It's important to note that each lender has their own guidelines for acceptable sources of down payment, so be sure to check with your lender to see what they will allow.
