Create A Down Payment Even If You Have Zero Saved Right Now

By: Thomas Cook

Create A Down Payment Even If You Have Zero Saved Right Now


We Have Some Creative Ways Which Might Help! 
Phil and Laura called our Hotline about an article that was in one of our recent newsletters. The article that sparked their interest was entitled “Contrary To Popular Belief… You CAN Buy A Home With Almost ‘Zero’ Dollars Down”.
They wanted to know how this would work as the house they were renting was being sold and they were looking at the cost of moving and having to pay at least $2,200 per month to rent something else!
A brief conversation on the phone got them excited about the possibilities of buying instead of paying rent. At the Buyer Consultation which followed a few days later, one of our Buyer Specialists did a complete financial analysis for them.
Phil and Laura learned that they qualified for a large RRSP contribution and for an RRSP loan that would allow them to make that investment.
With the loan and RRSP contribution in place, a large tax refund was then in the works which would provide the vast majority of their down payment. They were set to start house hunting!
Within three weeks of making that initial call, from a position of thinking that it was impossible for them to buy without having any down payment, they made an offer on the new home of their dreams.
Every year, just a few months before it’s time to file your tax return, we tell buyers that this is the perfect time of year to “create” a down payment by using their RRSP allowable contribution limit and the Federal Government’s Home Buyers’ Plan for first time home buyers.
First a quick review… every first-time buyer has the right to withdraw up to $25,000 from his or her RRSP at the time of a home purchase.
The little-known secret is that the money does NOT need to be used strictly for the down payment on your house or condo purchase.
However, it does have to be in your RRSP for at least 90 days before pulling it out to purchase a home, so that’s why you need to do some advance planning!
It also can be used to pay down other debts, pay closing costs, fund renovations, or even finance a vacation to the Bahamas (not recommended, but still possible).

Thomas Cook

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Here are 5 proven ways to move safely and smartly towards your real estate buying goal...

  1. Download a free copy of my Ultimate Home Buyer’s Guide book
Find out everything you need to know about buying a Toronto house or condominium. Instead of randomly searching all over the internet, jump start your home buying experience and get a wealth of expertise and experience in one place.

Download your Guide here
  1. Get a custom listings search set up for you and receive targeted listings daily
If this list is not specific enough for you, we can put together a custom list of homes.  Maybe you want only 2-bedroom condos in specific neighbourhoods, or only semi-detached houses, or even a certain school zone. 
We can set up your HOMEWatch search for any area you choose (not just downtown Toronto), and you'll get immediate access to homes within minutes of them being listed.  Just leave some search criteria here
  1. Set up a step-by-step plan with the best ways to get to your home buying goal
At the beginning of the home buying journey, often the picture of what the end result might look like is a little ‘fuzzy’.
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.

To arrange your no-obligation Starbucks Strategy Session, click here.
  1. Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
Start getting educated about what your condo likes and dislikes are. 
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
Pick the date and time you like to go on your Tour.
  1. Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Home buyers have come to us after trying to work with another agent saying “I don’t think he even knows exactly what I’m looking for and I’ve got questions he doesn’t have the answers to”.
Don’t make the same mistake.  Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.