Down Payment

Down Payment

How much will I initially need to purchase my new home?

You will need enough funds to cover your down payment and closing costs, as well as the remaining balance on the cost of the home. This can be sourced through financing or other means.

A larger down payment means greater savings.

The money you pay up-front for a house is the down payment. Down payments are typically a percentage of the purchase price of the home. The source of money for your down payment is often either your savings or the net proceeds from the sale of a home you already own.

The larger your down payment, the more you save in the long run. A larger down payment:

  • Reduces the amount of your monthly principal and interest payment
  • Reduces the total amount of interest you pay over the life of your mortgage

Your TD Canada Trust Mobile Mortgage Specialist can help you compare mortgages, determine which mortgage is right for you, and show you money-saving strategies.

Closing costs

Closing costs are the legal and administrative fees and disbursements associated with buying your home. These costs are in addition to the purchase price of the home. They can vary widely depending on:

  • The property being purchased
  • Services required
  • Taxes
  • Applicable insurances
  • Closing dates affecting interest adjustments
  • The balances of any prepaid expenses

Ask about the Home Buyers’ Plan

The Home Buyers’ Plan (HBP) lets a first-time buyer withdraw up to $20,000 from RRSPs for a home purchase, subject to certain repayment conditions. For more information, check the Canada Customs and Revenue Agency website.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s