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.
