It’s actually $1350 back on a $10,000 investment. The dark side is that you still have to pay the $10,000.

I think you can use it as a landlord.

In principle, your down payment is not supposed to be with borrowed money.

In practice, if you draw the other 5% from your LOC several months before hand, the bank will not worry about it. When you go to sign the final mortgage papers at the bank, they’ll ask where the downpayment money is, or where it’s coming from. If you have to draw down your line of credit a few weeks before closing, the bank will notice this.

Peter: Yes the condo is my first purchase, so I take it I’m eligible. I’m sure you’re going to get a great discount in Bby considering how much further prices should fall this year. I doubt if the budget will do anything to change market conditions. I bought after there was a large price adjustment on a condo I was interested in (just under 10% drop), and now almost regret not waiting a few more months…couldawouldashoulda.

I wonder if anyone here could answer another question:

I will have about 15% down when time for financing, and I of course would like the full 20% to avoid CMHC. I have no debt and access to the other 5% via a line of credit. Can I simply draw the other 5% for my down-payment to avoid paying CMHC, or will the bank consider that a big no-no when assessing my assets and liabilities and not accept that as part of my down-payment? Alternatively, I could ask family for the other 5% short-term, but would rather keep things simple.

I want to do some reno’s real soon, mostly to convert the basement into a rent-ready space (floor, walls, doors, ceiling). should I hold back $10k of my initial down payment from the market and reno the basement instead? I am not quite sure how well off the reno + FTHB tax credits will compare to the standard SM routine. I don’t really want to miss out on this opportunity either, especially if the two credits will take care of my entire taxes owed for 2009 (even better without contributing to RRSP, save room for next year). Which brings me to another point, the reno credit is good until Feb 1, 2010. does that mean i can do it next year an apply the credit to next year’s tax return?

sorry for all the questions, knowledge quenches my thirst, and I am currently thirsty.

Is the condo you bought on the transit line your first purchase? If yes then like the other poster said you do not actually purchase anything until you close the deal and get the land transfer papers so you would be entitled to the credit.

I’m in Burnaby and hoping to buy a Condo / Townhome this year if possible. Pricing is still near the peak compared to how quickly they appreciated so I am hoping for some more downturn (bit selfish on my part but it’s my money and I like to save where I can).

Peter

Interesting to note that if you live in a condo and the condo board does renos on the common property, you can claim a portion of it on your taxes.