5 Ways To Get Money For A Home Down Payment

Ways to get money for a home down payment

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Buying your own home is a great investment, but potential homeowners need to be able to put down at least 5%. For some couples who live paycheck to paycheck, it can be a challenge to find a home down payment.

The first thing to consider is your overall budget – can you afford to pay for a mortgage, as well as the associated costs of maintaining a home? If the answer is yes, you’re off to a good start. The next thing is to figure out how to wrangle up the home down payment. There are several different sources to consider when trying to find ways to get money for a home down payment.

Here are five ways to get the money needed for a home down payment.

1- Mortgage registry

A lot of couples make the leap into home ownership around the same time that they tie the knot, and today’s savvy brides and grooms are turning to alternative registries in lieu of gifts, such as mortgage registries – guests can provide the newlyweds with a donation to their “mortgage fund.” It’s an easy way to let your friends and family contribute to the biggest, most important purchase of your life by helping you build a home down payment.

2- Cash in investments

The Home Buyers’ Plan (HBP) is a government program that allows you to withdraw funds from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. You can withdraw up to $25,000 in a calendar year. According to The Canadian Real Estate Association (CREA), an estimated 2 million plan users have borrowed more than $15 billion of their own savings from RRSPs to purchase a home since the Home Buyers’ Plan was introduced in 1992. The Plan has helped in more than 900,000 home purchases. It’s a great option if you have investments.

3- Work it into the deal

Believe it or not, sellers will go to all sorts of lengths to clinch a sale, and if you don’t quite have enough money for a home down payment, work the cost of it into the price negotiations of the house. If getting a home down payment is the only thing holding back a sale, the seller just may bend and drop the price enough to give you the deposit that you need.

4- Take on more work

A few overtime hours on the job or taking on a second work gig could put a lot of extra cash in your pocket quickly. If you can swing the additional workload, even for a few weeks, you will see your home down payment add up in no time.

5- Get an automated savings plan

It’s difficult to be diligent about stashing away savings, so enlist the help of your bank and arrange to have a certain amount of your paycheck withdrawn and stashed into a savings account. You’d be amazed at how quickly you’ll accumulate the funds needed for a home down payment.

More ways to get money for a home down payment?

If you know of other ways to get money for a home down payment, feel free to let us know in the comments section below.

If you are looking to buy a home with that wad of cash, visit DuProprio.com today.

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