You’ve found your dream home and you’re ready for a down payment.
It’s not easy to put together a down payment and it might just be the largest single cash expenditure you ever make.
However, there are numerous ways to find money at your disposal and put together that down payment.
Get Rid Of That Latte
Buying that latte or lunch everyday amounts to a lot of money slowly over time. Cutting back on these small daily purchases can help you save thousands in the long run. Even better, oven a Tax-Free Savings Account and earn extra.
Sell Your Stuff
There’s probably a bunch of items lying around your house that you haven’t used in years. Whether it’s that old treadmill or that massive CD collection, selling them could help you make some good money to put aside. You might even have bigger items, such as a second or third car that’s just parked outside and rotting away. Sell those items you don’t use anymore and you’ll make some good money!
Ask Your Family For Help
There’s no shame in this. Most lenders will allow you to use gifted funds from a family member for a down payment. Your mortgage provider will ask you to provide a signed letter stating that the funds are a gift and don’t need to be paid back.
Look For A Second Job
Getting another side gig for a little while can help you save some extra cash for that big down payment. In today’s day and age, finding a part-time job that allows you to work from home and have flexible hours isn’t that impossible. Ask your network of friends and perhaps they might have somewhere for you to work a few hours a week.
Liquidate Your Assets
Do you have stocks, bonds, or mutual funds that you could sell? This could be a great source of cash for you. It’s important to first talk to a business professional and assess how much tax you’ll have to pay by doing this.
Explore First Time Homebuyers Programs
Here in British Columbia, we do have a First Time Home Buyers' Program.
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.
For example, if you qualify and purchase a property with a fair market value of $400,000 with a person who doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.
Pay Off Your Credit Cards
This is one of the toughest financial things to do. You need to make some real financial sacrifices to pay off your credit cards and escape those nasty interest rates.