Options to pay deposit on a pre construction new home

Hi all,

Over the past few years it seems like the deposit required to purchase a pre construction home have gone up.

Was wondering what peoples thoughts were on how to get the cash required for the deposit?

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Our situation is like this...Currently own a home. Probably worth around 600-650k with a mortgage of 150k remaining. Got real lucky on the timing of the purchase...right before prices started to increase rapidly..

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Now were trying to get out of the GTA and move into a bigger home. Purchase price is around 780k with a 60k deposit over 8 months. Should be able to handle the increased mortgage payment once we close on the new home but getting that 60k cash to deposit over 8 months is tricky...

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What are the best options?

Personal loan?

Line of credit?

Home equity line of credit?

Posted May 30, 2019, 3:35 AM UTC

22
suptni•

I would say the one with the least interest rate would make the most sense and not locked in. Home equity line of credit may be the cheapest option.

1
KlidusOntario•

(Mortgage agent) Could always just refinance or add a small second mortgage to the property you currently own if there are no cash savings to access the 60k

1