Real Estate Blog - downpayment

How to Save for a Down Payment While Renting

Renters across Canada have been struggling with rising rent costs and wondering how they will be able to save for a down payment while renting. However, with some money management tricks and adjustments to your daily living, you can save for a down payment. It might go slowly, but every little bit helps. Here are some tips to save for a down payment while renting.

1. Make a Budget and Stick to It

Making a budget is the easiest way to make your financial goals happen. When you have a plan for where your money is going, it puts the power back in your hands and gives you an idea of how long it will take to save for a down payment.

To make a budget, write down your monthly income. Then, list your monthly expenses, including your savings goal.…

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A Guide to Buying Your First Home

As a first-time homebuyer, navigating the Canadian real estate market can be a daunting task. With fluctuating interest rates and housing prices, it’s essential to do your research and be prepared before making any significant investments. Here’s a guide to help you buy your first home in today’s market.

Determine your budget

Before you start looking for a home, it’s crucial to establish your budget. You should consider your income, debts, and other monthly expenses when determining how much you can afford to spend on a home. Experts suggest that your monthly mortgage payment should not exceed 30% of your income.

Check out our mortgage calculator!

Save for a down payment

Typically, you need a down payment of at least 5% of the…

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How Do You Pay Off Your Mortgage Faster?

Buying a home is a big investment and a huge commitment, but most homeowners will attest that the pay-off is worth the pains and strains of making those regular mortgage payments. Most people focus on their mortgage interest rate as a way of saving money (or at least, ensuring more of it goes toward your principal), but there are other ways to decrease the amount paid in interest. One way is to pay your mortgage off faster. More on that below, but let’s start with a basic mortgage 101.

What is a mortgage?

In order to buy a home in Canada, you’ll need a down payment of at least five per cent of the home’s purchase price (but it can be more). These funds are typically saved over time and can be boosted with the help of…

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The Advantages of Putting 20% Down on Your Home

Is it possible to have a down payment strategy in today’s sizzling Canadian real estate market? From the Prairies to Atlantic Canada, it is clear that all kinds of residential properties are rising in value. And while there are obvious advantages of putting 20% down on your home, current conditions are posing challenges to many homebuyers.

When you factor in higher interest rates, rampant price inflation, and accelerating price growth for single-family homes and condominium units alike, it can be a challenge for prospective homebuyers to find a place.

One of the biggest hurdles for buyers to overcome is the down payment.

According to the federal government’s rules, homebuyers need a minimum of five per cent down…

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Owning Is More Affordable Than Renting in Most of Canada

Is it better to buy or rent a home in today’s sizzling real estate market?

Because the barrier to entry in Canada’s housing sector has intensified over the last couple of years, many prospective homeowners have given up on the dream of homeownership, choosing to maintain their renter status. Even when they save enough for a down payment, the minimum threshold rises because of how rapid price growth is in this environment.

Remember, the national average price for a home in Canada is approximately $820,000.

As a result, many Canadians do not have a choice but to continue renting an apartment from a corporation or leasing a three-bedroom, two-bathroom house from private individuals.

But is this throwing money down the…

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Using Your RRSP to Maximize Your Down Payment

Saving a down payment for a house can be a daunting task. In this day and age, it can take years to save up enough money to afford a home, depending on various personal and economic factors. However, the Canadian government has created a Home Buyers’ Plan program, which allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to increase their down payment. If you’re buying with someone who also qualifies for the program, that gives you up to $70,000 to put toward your home purchase.

Essentially, by using your RRSP, you are borrowing funds from yourself to purchase your home. Below, we will explain both how much of a down payment you require and how you can leverage your…

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What Size of Mortgage Can I Afford?

When purchasing a house, most people need a loan be able to afford the home. These loans are called mortgages. A mortgage is a legal agreement where a bank or other lender loans money and charges interest in exchange for taking the title of the borrower’s property. Upon repayment of the debt, the borrower owns the property.

In Canada, to purchase a home, the buyer must first save up a down payment for the home. The minimum amount required is five per cent of the purchase price up to $500,000; 10 per cent of the portion between $500,000 and $999,999; and 20 per cent for the amount above $1,000,000. As well, if the down payment is less than 20 per cent of the purchase price, the buyer must also purchase mortgage loan…

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10 Tips for Getting the Best Mortgage Rate in Canada

When you purchase a home, a down payment is typically applied to the purchase price, and the balance is to be paid off over your term of the mortgage. The loan you receive from a lender in order to pay for the house is called a mortgage.

Simply put, a mortgage is a legal and binding agreement between a lender and a borrower for a specific amount of money that must be paid back within a predefined amount of time. The mortgage is a secured loan in that the house you are buying is collateral for the loan. This means that, should you not meet your mortgage repayment obligations, the lender has the right to take the property.

Purchasing a home and taking on a mortgage is a big commitment. In addition to the amount borrowed,…

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