Calgary Real Estate Agent / Tisha McKenna Royal LePage Benchmark
Facebook - Calgary Real Estate Agent / Tisha McKenna Wordpress - Calgary Real Estate Agent / Tisha McKenna
(403) 869-9730
Buying home
  Calgary Real Estate Agent / Tisha McKenna  

First Time Home Buyers
By Tisha McKenna
Royal lePage Benchmark

What can I use as a down payment?

The down payment can be the most difficult and challenging part of buying a new home. If you are having trouble raising money for a large down payment you can still qualify with as little as 5% down.

In this instance, your mortgage will have to be insured by CMHC (Canada Mortgage and Housing Corporation) or by GE Capital. If you have less then 25% to put down than your mortgage is considered to be high ratio. High ratio mortgages insured by CMHC or GE are charged a one time insurance premium of between 1.5% and 3.75% of the total mortgage amount, depending on the size of your down payment. This amount can be paid in full at the time or added to the total cost of you mortgage.

Home Buyers Plan

You may be able to withdraw up to $20,000 tax-free from your Registered Retirement Savings Plan (RRSP) under Canada Customs and Revenue Agency's Home Buyer's Plan to add to your down payment or to cover other purchasing costs. Your spouse or partner can do the same for a combined total of $40,000. To avoid paying tax on your withdrawal, you must repay the funds to your RRSP with 15 years. You must meet the following conditions in order to qualify for this program:

  1. You have to make your withdrawal request in the same year you wish to participate in the Home Buyer's Plan.
  2. You have not participated or owned a home within the last 5 years.
  3. You are a resident of Canada
  4. You have to enter into a valid written agreement to purchase or build a qualifying home.

For more information visit

Related Topics
- First time buyers
- Home purchase process
- Step by step through the process
- Is it better to buy or rent?
- How important is a home inspection?
- Why it's smart to get pre-approval
- mortgage options
- Understanding your new home sales contract
- Relocation services
- Typical expenses
- Choosing retirement living that fits your needs





Tisha McKenna
tel: (403) 869-9730

Copyright @ 2010-2016 All rights reserved.