How much Down Payment do I make, & how does it impact Mortgage?

/How much Down Payment do I make, & how does it impact Mortgage?

How much Down Payment do I make, & how does it impact Mortgage?

Canadian residents and Permanent Residents who wants to buy a property in Canada without a down payment of at least 20 per cent of the purchase price is usually required to get mortgage loan insurance from the CMHC, which requires a smaller down payment of 5 per cent on a home worth up to $500,000.

A 10 per cent down payment is required for the portion of the price over $500,000, with $1 million being the maximum property value allowed.

Foreigners who want to buy properties need to come up with a down payment of at least 35% to 50%. There is a 15% foreigner buyer’s tax of buying price in the GTA. Mortgage rates are same as any other Canadian or PR person.

People often have a related question: whether it is better to pay off your mortgage loan or not.

By | 2017-10-18T18:50:12+00:00 October 3rd, 2017|Comments Off on How much Down Payment do I make, & how does it impact Mortgage?

About the Author:

Amit Kalia
Amit is a full time local REALTOR® since 2003. Currently he is with RE/MAX Real Estate Brokerage Inc. in Mississauga. RE/MAX is Canada's #1 real estate company. He is supported by a very strong Sales and Marketing team. Together with his team, Amit has been serving property sellers, first time buyers, real estate investors, landlords, renters, new immigrants to Canada and non-residents. Amit and his team specialize in Square One condos and also work in many other Mississauga neighbourhoods. Team Amit Kalia offers a 30 Days Sold Guarantee to Sellers. Amit's team also provides exclusive A La Carte property management services for their investor clients and landlords.