Information About Buying A New Home
Banks vs. Mortgage Brokers, Which Should You Choose?
The minimum down payment on a house is 5%. Payments between 5% and 19.99% are subject to mortgage loan insurance with companies such as CMHC or Genworth. These are referred to as high ratio mortgages. A down payment of 20% is not subject to mortgage insurance and referred to as a conventional mortgage.
For example: If you’re purchasing a house at $400,000,
5% down = $ 20,000.
10% down = $ 40,000
20% down = $ 80,000
This all changes if you purchase a house that is $500,001. or greater. Click on the link below for more detail.
If you’re confused about how this works, send us an email and we will explain it, or put you in touch with a very knowledgeable mortgage broker.
CMHC Mortgage Loan Insurance Information and Rates