Wondering how much down payment you need to save when buying a home in Canada? In this episode, we discuss minimum down payments at different purchase levels and if there are any provincial differences in down payment requirements.
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Hi everyone, and welcome to another addition of Homebuyer's School.
Today I'm joined by Troy Champ, Mortgage Advisor with Mortgage Tree. And, today the question that we're going to ask is:
How much do I need for a down payment for a new house in Canada?
So, the minimum down payment is five percent of the first $500,000, 10% for any amount over $500,000, as long as the purchase price is under $1,000,000.
Is there a difference between a down payment in specific provinces? So, let's say in Alberta, is it different than in B.C. or Newfoundland?
There's no changes, yet.
There was rumors of the government looking into that potentially down the road, but as of right now, the down payment requirements are the same regardless of what area of the country you're in.
So, the minimum across Canada then is five percent for the first $500,000 and 10% anything over. Then, I think anything over that?
Anything over 1,000,000 requires 20% as a down payment.
Okay. Anything else to add?
In some small areas, banks may require higher down payment if it's very rural or very remote, but beyond that, no.
Okay. Well, thank you very much for the information.
Troy Champ: You're welcome.
Karl Yeh: Thank you for joining us and we'll catch you next time.
Let us know if you have additional home buying questions that we can answer by submitting them in the comment section below.
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About Troy Champ:
Troy is one of those uniquely capable mortgage experts who has refined his craft over 17 years of experience with two of Canada’s major financial institutions and then one of the largest mortgage brokerage firms in Western Canada. He is amongst a rare group of professionals who have funded over $500 million in mortgages over his career and received many top level awards for excellence.
A hallmark of Troy’s service pledge is unparalleled availability. While many will say they provide great service, Troy proves it day in day out without question. His clients are never left waiting for answers to their enquiries. Quite simply, his clients are thrilled to work with someone who says what they do and does what they say.