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Source of cash down

This article is meant to simplify first steps home buyers choosing their source of cash down

The cash down for your realstate purchase, could come from one or multiple sources:

1-RRSP: you can use your RRSP once in a lifetime to purchase a home, which we call RAP (regime d'accession à la propriété). The maximum you can retrieve for this purpose is 25,000$ per person. you should not have lived with a person who Rapped in the last two years. Plus your contribution to this RRSPs should be in the account for more than 90 days. You will fill a form T1036 and send it to the holder of the RRSP account. The government give first year grace period and by the end of the second year, you should reimburse the money over 15 years. Exemple: RAP=25,000$, reimbursment: 25000/15=1,666$ per year.

2- Gift Letter: if a close member of your family, father, mother...would like to help you with money, know that all institutions accept that kind of gift as a cash down. For this, their is a gift letter model attributed to each institution.

3- traditionnal way: money from Savings, TSFA, Investments...all acceptable and the rule of 90 days apply also to this source.

4- if none of the above is applicable to your situation, know that you can borrow the cash down through a personal loan or a line of credit, but you should qualify for both loans, mortgage and personnal loan.

i hope my article helped, if you have any question, don't hesitate to contact me.

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