It depends on the purchase price of the home. A down payment is the amount of money that you put towards the purchase of a home. The down payment is deducted from the purchase price of your home. Your mortgage loan will cover the remaining price of the home.
- if the purchase price of your home is $500,000 or less, the minimum downpayment is 5%
- if the purchase price of your home is between $500,000 and $999,999, the minimum downpayment is 5% for the first $500,000 and 10% for the portion of the purchase price above $500,000
- if the purchase price of your home is $1,000,000 or more, the minimum downpayment is 20%
Financing an investment property is a little more complex, as you need to consider the number of units your building will have.
- 1-4 units are zoned residential, slightly more difficult qualification criteria and financing options
- 5 or more units are zoned commercial, requiring a commercial mortgage, higher interest rates and and more difficult qualification criteria
- non owner occupied investment properties require minimum 20% downpayment
- 1-2 unit owner occupied, minimum 5% down payment if under $500,000, if the purchase price is over $500,000, the minimum down payment for owner-occupied properties is equal to 5% of the first $500,000 plus 10% of any amount over $500,000
- 3-4 unit owner occupied, minimum downpayment of 10%
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