The Wright Sisters Group | Union Realty Brokerage Inc. - The Beaches, Leslieville, Riverdale and East York Real Estate Specialists – Your East End Toronto Real Estate Team
23 January 2020
Outline Financial

Tip Tuesday Down Payment Amount

One of the most common questions we get from first-time buyers is how much will I need for the down payment?

We asked Outline Financial to give our clients a little insight:

"In order to qualify for a mortgage in Canada, you must have some funds to put towards a down payment. In other words, a mortgage cannot equal 100% of the purchase price.  You can buy a property with as little as 5% of the purchase price if the home is under $500,000.  For homes over $500,000, you are required to have a 10% down payment for the portion of the purchase that is over $500,000.  For example, if the purchase price is $800,000, you will need $55,000 for a down payment. When you are buying with less than 20% down, Mortgage Loan Insurance premium (default insurance through Canada Mortgage Housing Corporation) is added to the mortgage and becomes part of your monthly mortgage payments." - Olena Vus, Certified Mortgage Broker

Have more questions about mortgages or down payments? Give us a call today! 416-694-2499.