Down Payment Options
Exploring Your Down Payment Options
Making Homeownership More Accessible
Thinking about buying your first home? One of the biggest financial steps is preparing your down payment. The good news? There are several flexible options available to help you reach your goal faster — while staying compliant with lender requirements. Here’s what you should know:
RRSP Home Buyers' Plan (HBP)
The Home Buyers’ Plan allows first-time buyers to withdraw up to $35,000 from their RRSPs (or $70,000 for couples) to put toward a down payment — completely tax-free.
- Interest-free and must be repaid over 15 years
- RRSP contributions must be in your account for at least 90 days before withdrawal
- You must not have owned a home in the past four years
- The home must become your principal residence
This is an excellent option for buyers with existing RRSP savings who need a boost toward their first purchase.
First Home Savings Account (FHSA)
The FHSA combines the benefits of RRSPs and TFSAs — designed exclusively for first-time homebuyers.
You can contribute up to $8,000 per year, up to a lifetime maximum of $40,000
Contributions are tax-deductible
Funds can be invested in mutual funds, stocks, or bonds
Withdrawals for a qualifying home purchase are tax-free
Gifted Down Payments
If you’re receiving a down payment as a gift from a family member, lenders will require proper documentation to accept the funds.
A signed gift letter from the donor stating the funds are not repayable
Proof of deposit into your account prior to the home closing
In some cases, the donor may need to provide bank statements showing the source of funds
Documentation Requirements for Down Payments
No matter where your down payment comes from, be ready to show a 90-day transaction history for all relevant accounts.
Full, unaltered bank statements that show your name and account number
Documentation for any large deposits not part of regular income
A clear trail of any large internal transfers, with statements for all related accounts
These requirements follow anti-money laundering (AML) regulations to ensure transparency in all financial transactions.
Your down payment is a key part of your home-buying journey — and the good news is, you have options. Whether you’re using savings, RRSPs, gifted funds, or a mix, knowing the documentation requirements will save time and reduce stress.
Ready to buy your first home?
Contact Anoop Balakrishnan today for a personalized consultation and let’s take your first step together.