How Much Down Payment Do I Need?
One of the first things youโll want to figure out when buying a home is how much of a down payment youโll need. In Ontario, it depends on the purchase price:
๐จ๐ป๐ฑ๐ฒ๐ฟ $๐ฑ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ: Minimum 5% ๐๐ฒ๐๐๐ฒ๐ฒ๐ป $๐ฑ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ ๐ฎ๐ป๐ฑ $๐ญ,๐ฐ๐ต๐ต,๐ต๐ต๐ต: 5% of the first $500,000, plus 10% of the amount above $500,000 $๐ญ,๐ฑ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ ๐ผ๐ฟ ๐บ๐ผ๐ฟ๐ฒ: Minimum 20%If your down payment is less than 20%, mortgage default insurance is required. Also, this isn't just for first-time buyers.. it applies to any owner-occupied home purchase.
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Keep in mind if youโre self-employed or have a less than perfect credit history, lenders may ask for a higher down payment.ย
๐๐ฒ๐๐ถ๐ฑ๐ฒ๐ ๐๐ผ๐๐ฟ ๐ฑ๐ผ๐๐ป ๐ฝ๐ฎ๐๐บ๐ฒ๐ป๐, you will also need additional funds for closing costs which includes your lawyer fees, property taxes adjustments, home inspection, and appraisal costs.โ
๐๐ฒ๐๐ถ๐ฑ๐ฒ๐ ๐๐ผ๐๐ฟ ๐ฑ๐ผ๐๐ป ๐ฝ๐ฎ๐๐บ๐ฒ๐ป๐, you will also need additional funds for closing costs which includes your lawyer fees, property taxes adjustments, home inspection, and appraisal costs.โ
Itโs always smart to get clear on your numbers early so you can shop with confidence. If youโre not sure where to start or need guidance to get you on the right path, Iโm here to help.
