Down payment options

There are a many ways to put together a down payment. We classify down payments two ways: traditional, or non-traditional.

Traditional down payment sources

• Use savings currently in the bank (includes inheritance)
• Cash in RRSP's
• Non-RRSP investments: stocks, bonds, TFSA
• Withdraw RRSP with Home Buyers' Plan (HBP) (up to $ 35 000 per borrower, with a reimbursement plan)
• Non-repayable gift from immediate relative (parents, grandparents, siblings)
• Proceeds from the sale of a property (equity gained)
• Loan secured against proven assets such as, title free land or collateral (equity of a first home as security on the purchase of a second)
• Down payment grant (non-refundable amount paid by a federal, provincial or municipal government)
• Refinancing of another property
• Self-build construction (labour done by the borrower may make up to 50% of the down payment)

Non-traditional down payment

• Repayable loan from parents, grandparents, siblings 
• Personal loan