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