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How does a down payment work? 

A down payment is the amount you pay upfront when buying a property. Your mortgage covers the rest of the purchase.

The minimum down payment is as follows:

5% of purchase price:

  • For a property under $500,000.
  • For the first $500,000 of a property under $1 million.

10% of purchase price:

  • For the remainder of the purchase price in excess of $500,000, for a property under $1 million.
  • For a property with 3 or more units.

20% of purchase price:

  • For a property of $1 million or more.

Good to know:

The minimum down payment may be higher in some cases.

If your down payment is less than 20% of the purchase price, you will need mortgage default insurance.

How do I build up my down payment?

Find out about the Home Buyers' Plan (HBP) which allows you to take up to $60,000 from your RRSP for your down payment.

Also, discover the Tax-Free Savings Account for First-Time Home Buyers (FHSA) that could save you $40,000.

Need advice?

Make an appointment with an advisor at your local branch to discuss your home-buying plans.

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