The questions you should be asking about your down payment ⬇️
🏡 How much should I put down?
- Owner occupied:
••• In Canada, a minimum 5% down payment is required on the first $500K and a minimum 10% down payment is required above $500K.
- Rental/investment property:
••• Most lenders require a 20% down payment.
- A 20% down payment can make the difference of $500+ monthly savings towards your mortgage payments.
🏡 What are acceptable forms of down payment?
- RRSPs
- Savings
- Stocks/investments
- Gifted funds
🏡 What is mortgage insurance?
- It’s an insurance premium included in your mortgage total if you have less than a 20% down payment. This premium is paid to the lender as insurance in case you were to default on your mortgage payments.
🏡 How can down payment change my accessibility to more mortgage products?
- Access to different rates
- Access to 30 year amortization
- Access to business for self and self employed products
A down payment plays a large factor in your buying power and accessibility to mortgage products. It’s one of the first things to consider when thinking about investing in the housing market. Let’s sit down and create a plan to save for your down payment today 🏡.
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