How Much Do I Need For A Down Payment?
In Canada, you only need a minimum down payment of 5% to purchase a home, subject to certain maximum price restrictions. A down payment is the amount of money you put toward purchasing a home. Your lender deducts the down payment from the purchase price of your home, and your Mortgage covers the rest of the cost of the house. The minimum amount you need for your down payment depends on the home's purchase price. If your down payment is less than 20% of the cost of your home, you must purchase mortgage loan insurance.
- $500,000 OR LESS – ONLY 5% OF THE PURCHASE PRICE
- $500,000 TO $999,999 – 5% OF THE FIRST $500,000 OF THE PURCHASE PRICE + 10% FOR THE PORTION OF THE PURCHASE PRICE ABOVE $500,000
- $1 MILLION OR MORE – 20% OF THE PURCHASE PRICE