GETTING THAT DOWNPAYMENT: It might be easier than you think!

For many first-time homebuyers, that down payment is one of the big obstacles to home ownership. Saving up cash – especially if you're paying rent, paying down student loans, and trying to live a life – can be slow and difficult work.

In most cases, you'll need to save up at least 5% of the purchase price of your home. But there are some programs and tips we can offer to give your down payment a boost – to get you into your home faster:

 

1. Home Buyers' Plan (HBP) lets first-time homebuyers withdraw up to $25,000 each (or $50,000 for a couple) tax-free from their RRSPs. You'll need to pay those funds back, of course, on a repayment plan.

 

2. A financial gift from a parent or blood relative can be used as a down payment. This cannot be a private debt; you'll need to document in writing that the funds are a gift and you are not required to pay the money back at any time.

 

3. Start small. If your dream home is out of reach, look for a starter home. Use today's low interest rates to start hammering down your first mortgage, then watch for the opportunity to get the home of your dreams – using the equity and credit rating you've been building!

 

To discuss this, any other Real Estate items, or just to say hi please call me at 780-908-1224.

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Today’s Bank of Canada rate hold announcement marks almost four straight years that the key benchmark rate has remained unchanged, since September 8, 2010. Great news if you have a variable-rate mortgage or home equity line of credit; the prime rate stays at 3%.

 

The announcement noted that “the risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished.” With these considerations, the Bank is maintaining its monetary policy stimulus, and remains neutral with respect to the timing and direction of the next change.

 

The next rate-setting day is October 22nd.

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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.