Buying a home is a huge commitment, and likely the most expensive purchase you will ever make. The first financial cost you can expect is the down payment. A down payment is the amount of money put towards the purchase of a home, which represents a part of the total payment often covered by a mortgage loan.
How much is a down payment?
In Canada, the down payment amount depends on the price of the home. The minimum down payment is 5% on the first $500,000 of the home price and 10% on any portion exceeding $500,000, up to $1 million. Homes priced above $1 million require a minimum 20% down.
The more you can put for your down payment the better. Benefits of a bigger down payment include lower monthly mortgage payments, paying less…