For many people especially first time homebuyers the hardest part of buying a home is to raise/save money for down payment. While it is possible to buy a home, with no down payment, the amount of your down payment will determine whether you will have a conventional mortgage or an insured, high-ratio mortgage. A conventional mortgage: means your down payment is at least 20% of the purchase price. A highratio mortgage: means your down payment is less than 20% of the purchase price and mortgage loan insurance is applicable. CMHC, Canada Mortgage and Housing Corporation, and Genworth are the major provider of this type of insurance in Canada and its current loan premiums are to the right:

 

You can use your RRSP as down payment. If you qualify as the first time homebuyer, under the federal government’s Home Buyer’s Plan (HBP). Withdraw up to $20,000 from your registered retirement savings plans (RRSPs). If you buy the qualifying home with your spouse or common-law partner, or with other individuals, each of you can withdraw up to $20,000. Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.