Normally clients think a minimum of 5% downpayment is enough in buying a house. Sometimes it needs more than 5% downpayment based on the calculation of your bank mortgage advisor or specialist. They also consider your liabilities and the total assets that you have. This downpayment will always be based on the amount of house that you are intending to buy. The higher the value of the house, the more money that you might need. Remember also that a downpayment of less than 20% will be required to be approved by CMHC which acts as a guarantor to the bank in case there is huge default in payment by the buyer. Buyer always be reminded also that a premium is charged by CMHC with a downpayment of less than 20%; you can either pay it or ask your mortgage advisor to add it from your mortgage. There will be always a closing cost to finish the transaction.
How much Downpayment?
- October 1, 2015
Affiliated Real Estate Agent
CENTURY 21 Leading Edge Realty Inc., Brokerage*