Minimum Down Payment Requirements

Today we're going to talk about the minimum down payment requirements.

In Canada, the minimum down payment to purchase a home is 5%. And there's a common misconception that only first time home buyers are able to utilize this 5% down payment. And that is not true. Actually, anybody can buy a home with as little as 5% down.

It doesn't matter if you're a first time home buyer or not. The rules are that you need to have a 5% down payment on the first $500,000, and then any amount that goes over 500,000, you are required to use a 10% down payment up to $1 million over $1 million in Canada. We do have to have at least a 20% down payment to buy the property.

So as an example, for the minimum down payment calculation, let's say you buy a home for $600,000. You have to use 5% on the first 500,000 and 10% on the amount that goes over 500,000. So your total minimum down payment on that purchase price would be $35,000.

As always, if you have questions, reach out to our team for more information and have a beautiful day.