2. Determine your downpayment
Determining the amount of your downpayment is certainly one of the most important steps in buying a home. This exercise will enable you to calculate the savings you will need to make your plan a reality.
The table below sets out two downpayment levels based on the value of the property:
Property value
Downpayment of 5%
Downpayment of 20%
Downpayment of 25%
$100,000
$5,000
$20,000
$25,000
$150,000
$7,500
$30,000
$37,500
$200,000
$10,000
$40,000
$50,000
$250,000
$15,000
$62,500
Financing a home with a downpayment of only 5%
Did you know that you could obtain a mortgage with a downpayment of only 5% of the purchase price with a loan insured1 by the Canada Mortgage and Housing Corporation (CMHC) or Genworth?
However, if you are able to make a downpayment of 20% or more of the value of the home, you automatically qualify for a conventional (uninsured) mortgage loan. This will allow you to save on mortgage insurance costs2.
1 The minimum downpayment on a property is 5% for a duplex and 10% for a triplex or quadruplex. 2 Insurance premiums can be added to the total amount of your mortgage. CMHC or Genworth file analysis fees and taxes on insurance premiums must be paid separately.
Meet with a Mortgage Development Manager in your home.
