How Much Do I Need for a Down Payment?
What you need for your minimum down payment is a very common question in today’s market so let’s break that down. The minimum down payment requirements are:
- 5% on the first $500,000.
- 10% on the next $500,000, up to $1,000,000.
- 20% on any purchase over $1,000,000.
20% will also be required when you:
- Purchase a rental property
- Take a 30-year amortization
- Refinance your mortgage
- Purchase over $1,000,000
- Utilize alternative financing options
Examples of some down payment sources may include:
- Personal savings
- A gift from an immediate family member
- RRSP’s or TFSA’s
- Investment accounts
- Borrowed money in some cases