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A down payment can come from several different resources.
1. You can use your RRSP's as a down payment. You are required to pay them back within 15 years but you can deduct them tax free when using an RRSP as a down payment on a home as a first time home buyer.
2. Your down payment can come from your savings. A lender would ask to see your last three months bank statements to confirm the money has been in your account for a number of months.
3. You can have your down payment gifted from a direct reletive. A lender would require a signed gift letter and a bank statement confirming the deposit.
4. Your down payment can come from the sale of your current or previous home. A lender would want to see a signed sale agreement and a proceeds of sale statement as well as any mortgage statement to confirm what amount you have available after selling your home and paying out your existing mortgage.
First time home buyers can use their RRSP savings as their downpayment. With the federal government's Home Buyers' Plan, you can use up to $20,000 in RRSP savings ($40,000 for a couple) to help pay for your down payment on your first home. You then have 15 years to repay your RRSP. To qualify, the RRSP funds you're using must be in your account for at least 90 days. You'll also need a signed agreement to buy a qualifying home. For more information, visit Canada Customs & Revenue Agency Web site.
The minimum down payment required is 5% of the purchase price of the home. And in order to avoid paying mortgage default insurance, you need to have at least a 20% down payment.