Wouldn't it be nice if buying houses for sale was like the latest new car promotion? "No down payment, no interest for 12 months in blue world city!" Yes, we'd appreciate it that Revenue Canada just "took our word for it" on the amount we owe this year. Where has the trust gone?

However, until the situation changes the situation will have to be dealt with the reality of down payment requirements when you plan that next purchase. In a perfect world, that means putting up 20 per cent of the purchase price , and staying clear of the nasty higher-ratio mortgage coverage. If you're like most buyers though, the 5 per cent minimum is more realistic.

The problem is that with many homes selling for over $300,000 today, even 5 per cent (or $15,000) can be daunting for the first time homebuyer. If you have a little know-how and a good understanding of the alternatives, your odds of making that vital down cost will be looking good in no time.

Save it Up

Perhaps because they couldn't get VISA in the Mayflower Our ancestors were taught to purchase things the hard way: by making savings for them. This is a method that we should emulate, especially when looking at homes for sale.

When you've figured out the cost range that you'll be buying into and the amount that it will cost for the down payment, decide on the timeline you want to stick to and develop a strategy. How much do you need be saving each month in order to meet your goal? It can seem daunting at first, but it's amazing how small changes can be a huge benefit in the end.

Take advantage of the free coffee at work for a few minutes instead of buying the five-dollar coffee. Eat in more and have a less expensive dinner out. Sooner or later, you're ready to offer your services, and the joy you'll feel when the deal is done will surpass the most intense energy boost you've ever felt.

Pass it Down

One possible source for a down payment that sometimes isn't considered is an imminent inheritance. It's something we often don't discuss due to the fear of being perceived as insensitive or unwise.

If "the writing is on the wall", there's nothing to be concerned about putting it into your savings plan towards houses that are available for purchase. In the end, that's why an uncle or grandparent puts you in their wills in the first place, so that they will be able to enrich your life after they're gone. Besides, if they're moving into a "better place", why should you not?

Take it Out

Do you remember turning your house upside down , trying to find your glasses, only to find them on your head the whole time? Sometimes we have what we need , and don't think about it.

You may have put many thousands of dollars into an account with no tax and thinking it had to stay there. As it turns out, you can cash out any amount at any point without penalty or taxes to pay.

Your Registered Retirement Savings Plan (RRSP) can be another option in funding houses for sale. As long as you pay it back after 15 years withdrawals can be made without penalty by the Canadian Revenue Agency's Home Buyers' Plan. It's one agency that's rarely at your side, so take advantage while you can.

Keep it, give it on or take it out. These are just three options to make an initial down payment on your dream home without hassle or stress. Do not try the IOU approach, especially when dealing with the taxman. He may lock you up and then throw the key away. You'll be entering the world of "real estate" with no down amount, the price will be the moment you get to know your new neighbors.