How much down payment do I need for a house

In Ontario, the minimum down payment required to purchase a house depends on the purchase price of the property. Here’s a breakdown of the down payment requirements:

• Homes with a purchase price of up to $500,000 – the minimum down payment is 5%.
• Homes with a purchase price between $500,000 and $999,999 – the minimum down payment is 5% of the first $500,000 of the purchase price. Plus 10% of the portion of the purchase price over $500,000.
• Homes with a purchase price of $1 million or more – the minimum down payment is 20% of the purchase price.

Another important to note to consider. If your down payment is less than 20% of the purchase price, you will need to pay for mortgage default insurance. This protects the lender in case you’re unable to make your mortgage payments. Mortgage default insurance is usually added to your mortgage payments and can increase your overall costs. The cost of this insurance varies depending on the size of your down payment and the purchase price of the house.

Furthermore, It is always recommended to consult with a mortgage specialist to determine the best down payment amount for your specific financial situation.

For more information regarding interest rates visit Bank of Canada.

To calculate the down payment needed for a house check out our mortgage calculator.