Buy A Home - How Much Down Payment Do I Need?

In order to buy a home, you will require a minimum down payment of at least 5% of the purchase price. Here are a few options for obtaining the necessary down payment.

• Personal savings

• Gifted funds

• Cash-back mortgage

• Flex-down mortgage

• RRSP Home Buyers Plan

• Existing equity

A down payment of 20% of the value of the home is called a ‘conventional mortgage’. If this is possible, you can avoid having to pay for mortgage insurance.

As a home buyer, you might require a ‘high-ratio mortgage’. This is necessary when you have less than the 20% down payment. This type of loan is subject to mortgage insurance provided by Canada Mortgage and Housing Corporation (CMHC) or Genworth (GE). An insurance premium will apply.

Check out our Durham Region Homes For Sale website.