When it comes to down payments, there are various options available that most people don't even consider. Here are a few examples:
RRSP’s are used as down payments. First time home buyers are able to use up to $25,000 in RRSP savings per person and $50,000 for each couple
A gift: people turn to relatives for help with a down payment. This is acceptable for lenders a long as the borrower presents a “gift letter” which states the money is a gift and not a loan.
Cash back from your lender: non-bank lenders will give up to 5% of the purchase price of the home.
Some individuals borrow their down payment.
I hope this has helped answer your question regarding down payments and which methods can used to get the necessary funds.
Please feel contact to one of our knowledgeable mortgage brokers at any time if you would like more details about the services available to you.