Mortgage down payment is a key factor to be considered when purchasing a home.
Mortgage down payment is the amount of money you pay up front in order to obtain a mortgage
The greater your down payment you contribute towards the purchase of your home, the more you save in interests in throughout the lifespan of your mortgage
In general your down payment can come from different sources including:
- Your personal savings
- Gifts from relatives or an inheritance
- Accumulated dividends on life insurance policies
- Non-registered investments such as Canada Savings Bonds, equities or bonds, guaranteed Investment Certificates (once they have matured or if they can be made effective),
- Borrowing from your registered RSP under the Home Buyers’ Plan
Verifying the down payment with documentation received will confirm the down payment has been evaluated as acceptable and meets compliance requirements.
The Government of Canada recently announced the minimum down payment requirement will be increased from 5% to 10% on the portion of a purchase price for a property that is above $500,000 but less than $1 million on insured mortgages. This change will take effect on February 15, 2016
|Minimum down payment needed according to home purchase price|
How much do you need as a down payment to obtain a mortgage?
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