Accumulating the down payment is the biggest challenge prospective homebuyers face. The down payment can come from several sources. According to the "2021 First-Time Homebuyer Survey & Financial Fitness Study*" performed by Sagen, the most common source for homebuyers ' down payment was their Personal Savings, followed by their RRSP.
The CRA offers a Home Buyers' Plan for those wishing to withdraw from their RRSP. The Home Buyers' Plan is a program that allows you to withdraw from RRSPs to buy or build a qualifying home.
Another common source many homebuyers have availed of are gifted funds from an immediate family member. Each lender will have its own policies surrounding this source of down payment. Alternatively, you can borrow part or all of the down payment. Borrowed down payments are not accepted by all lenders and come with additional qualifying criteria.