Definition
Down payment assistance refers to all external sources that can complement personal savings to reach the required minimum down payment.
**1. Family gift**: - Non-repayable gift from a close relative - Signed gift letter mandatory (lender-accepted template) - Must come from an immediate family member (parents, grandparents, siblings depending on lender) - Can constitute 100% of down payment (under conditions)
**2. HBP — Home Buyers' Plan**: - Withdrawal of up to $60,000 from RRSP (since 2024, raised from $35,000) - Repayment over 15 years - Conditions: first-time homebuyer (or not having owned in the previous 4 years)
**3. First Home Incentive (FHI)**: - Interest-free loan of 5% (new) or 5-10% (new, first-time) from CMHC - Program put on hold in March 2024 (closed to new applications)
**4. Provincial and municipal programs**: - Quebec: Accès Condos (City of Montreal), SHQ interest-free loans for low-income households - Some Quebec cities offer renovation grants convertible into down payments through revitalization programs
**5. Private party loan**: - Third-party loan can be used as down payment under strict conditions (disclosed to lender, included in TDS calculation)