Sources for Your Downpayment

When buying your house, particularly your first house, finding the down payment is frequently the most difficult part. There are a number of places you can look for the down payment to make home ownership a reality, or to minimize the amount of that down payment. 
 

• Open a savings account and deposit a fixed amount from each pay- cheque, including any income tax refunds. 

• Sell or refinance your car, or boat. 

• Sell any stocks, bonds or marketable securities. 

• Determine if there is any cash value in your life insurance policy. 

• Sale any personal property, or other assets to generate cash.

• Obtain a gift or loan from family or friends. 

• Obtain a line of credit at your local bank which allows discretionary spending of the funds (this should be arranged before applying for financing). 

• Obtain the guarantee from a friend or family member whose credit worthiness would guarantee the financing. 

• Additional savings occurring between the time of the offer and the time of closing. 

• Obtain personal loans on unusual assets i.e. jewelry, cameras, furs, coin or stamp collections, etc. 

• Arrange with your current landlord to purchase the property at a pre-agreed price, and invest "sweat equity" to create the down payment. 

• Obtain a loan from your current employer or business. 

• CMHC provides high ratio financing i.e., up to 95% of the selling price which eliminates the need to gather a large down payment. 

• High ratio lenders or insurers will accomplish the same thing as CMHC, except that they are operated by private corporations, and not by the Canadian Government. 

• Obtain a MasterCard or Visa to provide a cash advance (this should be arranged before applying for financing), and should be one of the last alternatives.