How Much Do I Need to Put Down to Buy a House?

How Much Do I Need to Put Down to Buy a House?

The amount you need to put down to buy a house in Canada will depend on a number of factors, including the price of the home, the type of mortgage you are using, and your credit score.

Here are a few general guidelines:

1. Conventional mortgages: For a conventional mortgage, you may need to make a down payment of at least 5% of the purchase price of the home. However, if you have a credit score of 600 or higher, you may be able to put down as little as 3% with some lenders.

2. High-ratio mortgages: If you are using a high-ratio mortgage (meaning you are putting down less than 20% of the purchase price), you will need to purchase mortgage default insurance. The minimum down payment for a high-ratio mortgage is 5% of the purchase price.

3. First-time homebuyer programs: If you are a first-time homebuyer, you may be able to take advantage of government programs that allow you to put down as little as 5% of the purchase price.

It's important to note that the down payment is just one of the costs associated with buying a home in Canada. You will also need to pay closing costs, which can add up to several thousand dollars.

It's a good idea to speak with a mortgage lender to get a more accurate estimate of the down payment and closing costs you will need to pay based on your specific situation.

Tags

• vancouver real estate (14)
• mortgage (8)
• down payment (2)
• high-ratio mortgage (1)
• first-time homebuyer program (1)