Smart Backup Down Payment Sources For Toronto Condos

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.