What is a “Down Payment”?
An amount You pay towards the purchase of a home. This part is not financed by the mortgage loan and deducted by the lender from the price of Your home. The difference between the purchasing price and the down payment will be Your mortgage amount.
What is a MINIMUM Down Payment in Canada?
🔹5% if the purchasing price is equal to or less than $500,000;
🔹10% of the remaining purchasing price, if purchase price is over $500,000 but less than $999,999;*
🔹20% if the purchase price is over $1,000,000.*
*Example: If the property price is $750,000, the minimum down payment would be $25,000 (5% from first $500,000) + $25,000 (10% from the difference $750,000-$500,000=$250,000) Total down payment is $50,000.
If you down payment is less than 20%, Mortgage Default Insurance premiums would be added to Your mortgage balance and amortized over 25 years.
Wondering how much You can afford for Your New Home? Call our Mortgage Agent and enjoy complimentary consultation:
Inna Bogdanov 416.268.0004 | Inna@ikfinancial.com
Katerina Markevich 416.388.8153 | Katerina@ikfinancial.com