Down Payment

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The money (a.k.a. equity) that you contribute when buying a property. The more money you put down, the less you have to finance.

The minimum down payments in Canada are as follows:

  • To purchase an owner-occupied home: 5%
  • To purchase and avoid paying mortgage default insurance: 20%
  • To refinance at the lowest rates: 20-25% (depending on lender)
  • To get a home equity line of credit (HELOC): 20%
  • To purchase a 1-4 unit rental property at the best interest rates: 20%
  • To purchase a 5+ unit rental property: 15%
  • To get an equity mortgage: 35% (at least)
  • To get a mortgage as a non-resident: 35%

See also: Equity

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