To get the best home mortgage rate, it is good to have at least a small down payment to pay. So, your down is an important part of your application. In order to help you get a good down payment, here follow some tricks.
Where your down payment comes from? Some funding sources are obvious but others have to be discovered! Your home mortgage down payment comes from your own assets, from other people you know or from a gift from your family.
Home mortgage down payment from your assets
This is the most common down payment source. Down payment from your assets imply that this down payment comes from your own money and you pay it when you get your home mortgage.
Your RRSP could be a possible source of down payment. But before to go, be sure you know the rules of the program and if it is a good idea to use it. Your personal savings are probably the best source for down payment. It includes money in your bank accounts and your investments (non-RRSP).
While refinancing home, you get money to make a down payment on a new home. The fresh money you get after refinancing home is not considered as a mortgage loan because you withdraw equity of your own property.
Finally, some life insurance contracts have a savings part with insurance. So, you can borrow the down payment from the value of your life insurance and use it on your mortgage loan.
Before to conclude, majority of banks ask you to be in possession of the mortgage down payment funds for at least 90 days.
