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Smart Backup Down Payment Sources For Toronto Condos

Toronto Condo Team CA
Publication date:
September 15, 2022
Article Summary: 

This article discusses sources of backup down payments for people wanting to buy condos in Toronto. It states that down payments of at least 5% are required for approved mortgage applications. However, this rises to around 20% for condos costing over a million dollars. Six sources of backup down payments are then suggested: personal investments, the Registered Retirement Savings Plan (RRSP) Home Buyer's Plan, parents' assistance (Bank of Mom and Dad or gifted funds), co-ownership, proceeds from selling an existing home, and budgeting. Personal savings and RRSP are easy ways to get a backup down payment, with RRSP offering a considerable tax advantage. It suggests older parents can help their children by providing a home equity line of credit, which can be helpful for down payments. Co-ownership of a home or a condo together with another person is a viable option for those with smaller families or younger couples. Finally, the article suggests budgeting as a way to save money over time for a down payment.


Toronto, condo, down payment, mortgage, RRSP, co-ownership, budgeting, home equity line of credit

Source Citation: 
Toronto Condo Team CA
Smart Backup Down Payment Sources For Toronto Condos
September 15, 2022
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