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.