Tuesday, May 17, 2016

Down payment and your mortgage

HOW MUCH MONEY DO I NEED TO PUT DOWN TO BUY MY HOME?



This can be a loaded question in which there are may different answers to fit any scenario but below I will give you the basics! 

1. In order to purchase your first home you will be required to put down a minimum 5% down payment.  This is 5% of the purchase price of the home.

So if you are looking to purchase a $400 000.00 home you will need to have $20 000.00 to put down.  You can use RRSP's, savings, gifted funds from immediate family etc.

However:  In Canada if you put less than 20% down you will need to pay for mortgage default insurance and the percentage changes based on the amount you put down - so if you put down 20% most lenders will not charge you any fee, but if you put 5%, 10% or 15% you pay a fee for the mortgage default insurance  - click the link for more information. Mortgage Default Premium

2. If you are purchasing a rental property or vacation property you will need a minimum down payment of 20%,  so on a $400 000.00 home you will need $80 000.00 to put down.

Standard qualification will apply to the above situations and there are many grey lines depending on credit and product qualifications.  Contact Amy Wilson today to discuss your mortgage plan.

Have a fabulous day,
Amy Wilson
E: amy@yourmortgagegirl.ca
W: Amy's Website

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