• Open a savings account and deposit a fixed amount from each pay- cheque, including any income tax refunds. 
• Sell or refinance your car, if possible. 
• Sell any stocks, bonds or marketable securities. 
• Determine if there is any cash value in a life insurance policy. 
• Sell any personal property, or other assets to generate cash, if possible.
• Obtain a gift or loan from family or friends, if possible. 
• Obtain a line of credit at your local bank which allows discretionary spending of the funds (this should be arranged before applying for financing). 
• If possible, obtain a guarantee from a friend or family member whose credit worthiness would guarantee the financing. 
• Obtain personal loans on unusual assets i.e. jewelry, cameras, coin/stamp collections, etc. 
• Arrange with your current landlord to purchase the property at a pre-agreed price, and invest "sweat equity" to create the down payment. 
• Obtain a loan from your current employer or business, if possible. 
• CMHC provides high ratio financing i.e., up to 95% of the selling price which eliminates the need to gather a large down payment. 
• High ratio lenders or insurers will accomplish the same thing as CMHC, except that they are operated by private corporations, and not by the Canadian Government. 

As a first time home buyer, you may be able to take advantage of this plan administered by the Canada Customs and Revenue Agency.  You must meet certain criteria in order to participate.   Use this Link  to find all the information you need to know.

Click here  for an excellent step-by-step guide from The Canada Mortgage and Housing Corporation.  It includes information on how to determine your requirements, down payment, understanding your local housing market, affordability and cost calculations, choosing a real estate team and mortgage highlights.  It also provides details on preparing an offer and the steps involved in closing your sale.

This calculation arbitrarily assumes that 10 percent of your mythical mortgage payment would cover home owner’s insurance and principal repayment, with the rest going for interest and property taxes. It also assumes your top tax bracket (known to accountants as your marginal tax rate) is 28 percent. If your tax bracket is higher, your tax savings will be correspondingly higher. 

A. Your present rate                                         $ ______________________________
B. Multiply by 1.32                                               x 1.32
C. Equivalent monthly Mortgage payment     $ ______________________________

The result (line C) is a rough estimate of the amount you could spend for monthly mortgage payment (principal, interest, property taxes and homeowner’s insurance) without being out any  more money at the end of the income tax year than you are with your present rental.

Infromation is taken from www.terrequity.ca

Re/Max Diamond Realty Inc., Brokerage.  Independently Owned And Operated.

1570 Kipling Avenue, Toronto Ontario M9R 2Y1

Phone:  416-235-2500     Fax:  416-235-2828     Toll Free:  888-507-1668     Website:  www.remaxdiamond.com