Mortgage & Wealth Strategies
Say Hello To The Easiest Way To Mortgage
.png)
Beyond The Rate
As expert mortgage brokers, we know building wealth through homeownership and achieving financial freedom is about more than just chasing the lowest rate—it’s about strategy.
We're taking you behind the scenes and giving you the insider tools and powerful strategies to get ahead. If you’re a first-time homebuyer, you’ll find everything you need to secure your first property and start building wealth from day one.
If you’re an existing homeowner, this is where you take control. Maximize the wealth-building potential of your current home with proven strategies for refinancing, leveraging equity, and optimizing your mortgage for bigger opportunities.
Your mortgage is more than a loan—it’s a gateway to long-term financial success.
Our goal is simple: to equip you with the knowledge and tools to make smart, strategic decisions that will transform your financial future.
Let’s get started.
The Zero-Savings Down Payment Hack
January 22, 2025 | Posted by: Matt Broom-Hall
.png)
Are you ready to buy your first home but don’t have a down payment saved up yet? Don’t worry! There’s a smart strategy you can use to get the down payment you need, even if you haven’t set aside the funds yet. It involves using a loan or line of credit, an RRSP (Registered Retirement Savings Plan), and the Home Buyers' Plan.
Here’s how it works, step-by-step:
1. Borrow the Down Payment
The first step is to borrow the amount you need for your down payment. This could be through a personal loan, line of credit, or any other borrowing option available to you. But before you do this, make sure you complete a mortgage pre-approval. This is important because the loan you take out will impact your debt load, and you need to be sure you can qualify for a mortgage with these additional payments factored in.
2. Deposit the Funds into an RRSP
Once you’ve secured the loan, the next step is to open an RRSP account if you don’t already have one. Deposit the full amount of your down payment into your RRSP.
Why an RRSP? There’s a key advantage here: when you contribute to an RRSP, it reduces your taxable income for the year. This will generate a tax refund when you file your taxes, which we’ll come back to later!
3. Let the Funds Sit for 90 Days
In order to use the funds under the Home Buyers' Plan, they must sit in your RRSP for at least 90 days. This is a legal requirement under FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), and it allows the money to “vest” or become eligible for withdrawal.
4. Use the Home Buyers' Plan to Withdraw the Funds
Once the 90-day period is up and you’re ready to purchase your home, you can withdraw the money from your RRSP under the Home Buyers' Plan. This allows you to take out up to $60,000 from your RRSP without any tax penalties, as long as you’re using it for your first home’s down payment.
5. Get a Tax Refund (and Pay Down the Loan!)
Here’s the cherry on top: by making that contribution to your RRSP, you’ll likely receive a tax refund when you file your taxes. Depending on your income, this refund could be significant.
You can use this refund to pay down the loan you took out for the down payment, reducing your debt and saving money in the long run. It’s like getting a bonus just for following this strategy!
Important Reminder: Pre-Approval Comes First!
Before you start borrowing money for your down payment, it’s essential to complete a pre-approval with a mortgage professional. The pre-approval process will ensure you qualify for a mortgage with the added loan payments factored in. Without this, you risk not being able to qualify for the mortgage once you’ve saved the down payment.
Why This Strategy Works
This strategy is a win-win for first-time homebuyers who haven’t saved up their down payment. You get the benefit of borrowing money to secure your home, the tax break from contributing to an RRSP, and the Home Buyers' Plan lets you withdraw the money without tax penalties when you’re ready to buy.
With the added bonus of a tax refund that can go toward repaying your loan, this is one of the most creative and effective ways to overcome the down payment hurdle!