MAKING A DOWN PAYMENT ON A MORTGAGE



The down payment is the amount the home buyer directly provides towards the purchase price.

How much of a down payment needs to be made depends on a variety of factors such as purchase price, insurer regulations, lender guidelines, property type and usage, credit score, and employment history.


Generally, a down payment comes from the client’s own resources (e.g. bank accounts). Under certain conditions and repayment terms, first-time buyers, or buyers who have not owned a primary residence for at least 5 years, may make a down payment from funds withdrawn tax-free from their RRSP.


A non-repayable monetary gift from an immediate family member can also be used for a down payment. A special form is required.


Sometimes it is possible to purchase with quite a low down payment if you have a good credit history, steady employment, and funds to cover the closing costs.


Contact us for help deciding how much of a down payment will work best for you.



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Mortgage Guide in PDF

Applying for a Mortgage
Mortgage Glossary
Renewals
Refinance
First-Time Buyers
Down Payments
Credit Scores
Mortgage Insurance
Self Employed
Credit Problems