How Much Do I Need for a Down Payment?
What you need for your minimum down payment is a very common question in today’s market so let’s break that down. The Minimum Down Payment Requirement on Insured Mortgages:
- 5% for the portion of the purchase price up to $500,000.
- 10% for the portion between $500,000 and $1,500,000 (This means that buyers will be eligible to purchase an owner occupied home upwards of $1,500,000 with a minimum down payment of $125,000).
- 20% is required for purchase above $1,500,000.
20% will also be required when you:
- Purchase a rental property
- Take a 30-year amortization as a non first time home buyer
- Refinance your mortgage
- Purchase over $1,500,000
- Utilize alternative financing options
Examples of some down payment sources may include:
- Personal savings
- A gift from an immediate family member
- RRSP’s or TFSA’s
- Investment accounts
- Borrowed money in some cases