MINIMUM DOWN PAYMENT

What is the minimum down payment needed to purchase a home?

A minimum down payment of 5% is required to purchase a home, subject to certain maximum price restrictions. In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, appraisal fees and a survey certificate, where applicable).

Regardless of the amount of your down payment, at least 5% of it must be from your own cash resources or in the form of a gift from a family member. For non-residents and newcomers to Canada, typically 10% down payment is required. This down payment cannot be borrowed.

If the down payment is less than 20% you must also purchase mortgage default insurance.