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5 Surprising Ways to House-Hunt Like a Pro

Jackson Middleton • November 1, 2017

In a competitive real estate market, first-time homebuyers must leverage any advantage they can get. Cities like Toronto and Vancouver may be particularly tough to crack – but it can be done. Here are five surprising ways to house-hunt like a pro.

Pro strategy No. 1: House-hunt on a statutory holiday

Spring is peak real estate season,with the widest selection of homes for sale, but also more buyers and higher prices than what you’ll find in the off-season.

Give yourself an edge by shopping on Victoria Day or another holiday. You’ll find less competition and get more of your real estate professional’s attention, too. Sure, you’re sacrificing a long weekend, but if it gets you into your first home… #worthit

Pro strategy No. 2: Try crowdfunding

In today’s hot real estate market, it’s practically a given that first-time homebuyers will get help from their mom and dad: A full 65%of millennials plan to ask their parents or family for financial assistance. But why stop there?

Another great way to beef up your down payment is to consider using a crowdfunding platformthat you can direct your loved ones to for birthdays, holidays and any other gift-giving occasions. If you’re getting married, use it in lieu of a bridal registry.

Pro strategy No. 3: Write a compelling letter

Make a person-to-person connection, and you may come out on top in a multiple-offer scenario, as one Oakville, Ontario, family discovered.Their heartfelt letter won them the house they wanted, even though their offer was $150,000 shy of the highest bid. (It’s worth noting, however, that they still bid well over the home’s listing price.)

Pro strategy No. 4: Go in with friends

Not keen on condos? Co-ownership could be the wayto afford that detached house you’ve been dreaming of. Pooling resources with friends (or relatives) gives you an edge on affordability. Whether both parties live in the home in separate units or one lives elsewhere as a silent investment partner, protect your asset by having a lawyer draft an agreement outlining responsibilities and obligations and help guide you through the purchase documentation.

Pro strategy No. 5: Become a landlord

One way to boost the affordability factor of a home is to add an income-generating unit. A legal rental unit can offset your mortgage payments by as much as a few thousand dollars a month, in a desirable neighbourhood.

You don’t need a full apartment, either. If you’ve got a spare bedroom and are willing to share your kitchen and bath, you can earn several hundred dollars each month by hosting an international student through a homestay agency or by renting the room out on peer-to-peer vacation rental websites.


This article was written by Genworth Canada, and was originally published here.

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RRSP As A Downpayment

By DLC Canadian Mortgage Experts • December 28, 2022
Did you know there’s a program that allows you to use your RRSP to help come up with your downpayment to buy a home? It’s called the Home Buyer’s Plan (or HBP for short), and it’s made possible by the government of Canada. While the program is pretty straightforward, there are a few things you need to know. Your first home (with some exceptions) To qualify, you need to be buying your first home. However, when you look into the fine print, you find that technically, you must not have owned a home in the last four years or have lived in a house that your spouse owned in the previous four years. Another exception is for those with a disability or those helping someone with a disability. In this case, you can withdraw from an RRSP for a home purchase at any time. You have to pay back the RRSP You have 15 years to pay back the RRSP, and you start the second year after the withdrawal. While you won’t pay any tax on this particular withdrawal, it does come with some conditions. You’ll have to pay back the total amount you withdrew over 15 years. The CRA will send you an HBP Statement of Account every year to advise how much you owe the RRSP that year. Your repayments will not count as contributions as you’ve already received the tax break from those funds. Access to funds The funds you withdraw from the RRSP must have been there for at least 90 days. You can still technically withdraw the money from your RRSP and use it for your down-payment, but it won’t be tax-deductible and won’t be part of the HBP. You can access up to $35,000 individually or $70,00 per couple through the HBP. Please connect anytime if you’d like to know more about the HBP and how it could work for you as you plan your downpayment. It would be a pleasure to work with you.

Is There A Difference Between A Deposit And Downpayment

By DLC Canadian Mortgage Experts • December 21, 2022
If you’re new to the home buying process, it’s easy to get confused by some of the terms used. The purpose of this article is to clear up any confusion between the deposit and downpayment. What is a deposit? The deposit is the money included with a purchase contract as a sign of good faith when you offer to purchase a property. It’s the “consideration” that helps make up the contract and binds you to the agreement. Typically, you include a certified cheque or a bank draft that your real estate brokerage holds while negotiations are finalized when you offer to purchase a property. If your offer is accepted, your deposit is held in your Realtor’s trust account. If your offer is accepted and you commit to buying the property, your deposit is transferred to the lawyer’s trust account and included in your downpayment. If you aren’t able to reach an agreement, the deposit is refunded to you. However, if you commit to buying the property and don’t complete the transaction, your deposit could be forfeit to the seller. Your deposit goes ahead of the downpayment but makes up part of the downpayment. The amount you put forward as a deposit when negotiating the terms of a purchase contract is arbitrary, meaning there is no predefined or standard amount. Instead, it’s best to discuss this with your real estate professional as your deposit can be a negotiating factor in and of itself. A larger deposit may give you a better chance of having your offer accepted in a competitive situation. It also puts you on the hook for more if something changes down the line and you cannot complete the purchase. What is a downpayment? Your downpayment refers to the initial payment you make when buying a property through mortgage financing. In Canada, the minimum downpayment amount is 5%, as lenders can only lend up to 95% of the property’s value. Securing mortgage financing with anything less than 20% down is only made possible through mortgage default insurance. You can source your downpayment from your resources, the sale of a property, an RRSP, a gift from a family member, or borrowed funds. Example scenario Let’s say that you are looking to purchase a property worth $400k. You’re planning on making a downpayment of 10% or $40k. When you make the initial offer to buy the property, you put forward $10k as a deposit your real estate brokerage holds in their trust account. If everything checks out with the home inspection and you’re satisfied with financing, you can remove all conditions. Your $10k deposit is transferred to the lawyer’s trust account, where will add the remaining $30k for the downpayment. With your $40k downpayment made, once you sign the mortgage documents and cover the legal and closing costs, the lender will forward the remaining 90% in the form of a mortgage registered to your title, and you have officially purchased the property! If you have any questions about the difference between the deposit and the downpayment or any other mortgage terms, please connect anytime. It would be a pleasure to work with you.
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