How much down payment do I need to buy a home?

by Stephaniej

I would like to buy a home but I'm not sure how much I need for a downpayment. Can you help me.


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Oct 31, 2013
From Marie Copeland, Mortgage Broker
by: Response:

Stephanie, the lowest down payment to buy a home in Canada is 5% down until February 15, 2016, at best interest rate if your mortgage can be insured.

You will also need 1.5% of purchase price from your own resources for closing costs -- these include land transfer taxes and legal costs.

The mortgage insurance is compulsory by law unless you have more than 20% down payment.

All new mortgages made after February 15, 2016 will require a minimum down payment of 5% on the first $500,000, and an added 10% down payment on the amount over $500,000.

So a home costing $700,000 would require a $45,000 down payment - 5% on the first $500,000 and 10% on the remaining $200,000.

CMHC or Genworth mortgage insurance requires that the down payment comes from your own resources or is gifted by immediate family. The down payment can even come from borrowed money on approved credit, provided that the monthly payments are used to qualify you.

To qualify for low down payment, you must have very good credit, full time salaried income for at least 3 months or past the probationary period.

If your income is hourly, then you must be on your job for at least 2 years so that we can average your 2 full years income to come up with an average figure that we can use to qualify. Or, if your job is full time past probation, some lenders will qualify you based on your guaranteed hours.

If you are self employed for more than 2 years and declare your income, you can also buy a home with low down payment provided your credit is good and you qualify for the mortgage amount needed based on the 2 year average of your declared income.

If you are self employed less than 2 years, your credit is good, your business is registered or incorporated, and you have been previously employed for a minimum of 2 years in the same line of work, the chances are good that you can get a mortgage with 10% down payment.

If you have been self employed for more than 3 years and cannot show sufficient income on your tax returns to qualify ... your application has to be assessed individually and you will likely need a minimum 15% down payment or more.

And, if you have credit issues, I would need to assess your individual situation before I can answer your question.

The best thing to do is to call 1-905-308-8063 or contact Marie Copeland, Ontario Mortgage Brokers Here is the link: Contact Marie for home mortgage help

Or submit your online application - here you go:

The information you provide is confidential, the process is fast and easy, and I will get back to you within 24 hours.

I hope this helps and I look forward to hearing from you.

Marie Copeland, FSU, Mortgage Broker, Axcess Mortgage and Loans Financing Co. Ltd.

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