HOW TO GATHER YOUR MORTGAGE DOWN PAYMENT
- johnathanmcquoid
- Jan 17
- 2 min read
Saving for a down payment can feel challenging, especially for first-time buyers — but once you understand the available options, it becomes much more manageable and far less intimidating. Your down payment doesn’t have to come from just one place, and lenders accept several sources when properly documented.
See how different tools can help you build your down payment faster and with less financial stress. 👇
Once you understand your price range and monthly affordability, it’s time to explore the best down payment sources for your situation.
1️⃣ Tax-Free Savings Account (TFSA)
A TFSA is one of the most flexible tools for building a down payment.
✔️ tax-free growth
✔️ tax-free withdrawals
✔️ no restrictions on use
Because withdrawals aren’t taxed, the TFSA is ideal for short- or medium-term goals like purchasing your first home.
2️⃣ Registered Retirement Savings Plan (RRSP)
The Home Buyers’ Plan (HBP) allows you to use RRSP funds toward a home purchase.
✔️ withdraw up to $25,000 per person
✔️ funds must be in the RRSP for 90+ days
✔️ repayment starts two years after withdrawal
RRSPs work best when you need a larger down payment and want to maximize tax advantages.
3️⃣ Gifted Down Payment
Many first-time buyers receive gifted funds from immediate family.
✔️ acceptable for primary and second homes
✔️ can make up the full 20% down payment
✔️ reduces or eliminates CMHC premiums at 20%
A gift letter plus proof of deposit is usually all the documentation required.
💬 Final Thought
There are several ways to build a down payment, and understanding each option helps you save efficiently and avoid surprises during approval. Whether your funds come from savings, RRSPs, or family support, proper planning ensures that everything aligns with lender requirements.
If you’d like The Frontline Mortgage Group to review your down payment options and confirm which sources your lender will accept, send us a message anytime.