I hope that your year is off to a great start! Are you thinking about buying a new home this year? If so, I'm sure that you're probably considering and saving for a down payment. But, just how much do you need? Well, that depends on the price of your home.
Homes Under $500,000
In Canada, the minimum down payment for a home is 5%. So if you're buying a home for less than $500,000, you're required to put 5% down.
Homes Between $500,000 - $999,999
Are you looking for a home in this price range? You'll need to plan on 5% for the first $500,000 and then 10% for the amount above $500,000.
Homes $1 Million and Up
Any home with a purchase price of a million dollars or more requires a minimum of 20% down.
If you're paying less than 20% on any home purchase price, you're required to purchase mortgage default insurance. So, make sure that you consider that in your savings. I hope that this helps you understand your options better. We work with great lenders that can guide you through the mortgage process.
Are you looking to buy or sell property? If you’d like, we can have a real estate expert show you the most efficient process that saves you thousands of dollars, a lot of time, with little or no inconvenience to you. Contact us today!
Source: The Neal Estate Group