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How much you need for a down payment

Minimum down payment 

A down payment is the amount of money that you put towards the purchase of a home. The down payment is deducted from the purchase price of your home. Your mortgage loan will cover the rest of the price of the home. 

The minimum amount you'll need for your down payment depends on the purchase price of the home you'd like to buy. 

Purchase price of your home Minimum amount of down payment
$500,000 or less
  • 5% of the purchase price
$500,000 to $999,999
  • 5% of the first $500,000 of the purchase price
  • 10% for the portion of the purchase price above $500,000
$1 million or more
  • 20% of the purchase price

If you're self-employed or have a poor credit history, you may be required to provide a larger down payment.

Normally, the minimum down payment must come from your own funds. It's better to save for a down payment and minimize your debts.

Getting pre-approved and qualifying for a mortgage

The pre-approval amount is the maximum you may get. The approved mortgage amount will depend on the value of your home and the amount of your down payment. It may be a good idea to also look at properties in a lower price range so that you don’t stretch your budget to its limit.

Remember that you’ll also need money for:

  • closing costs
  • moving costs
  • ongoing maintenance costs

Qualify for a mortgage

To qualify for a mortgage, you’ll have to prove that you can afford the amount you're asking for.

We as mortgage brokers will use your financial information to calculate your total monthly housing costs and total debt load to determine what you can afford.

Such as:

  • your income (before taxes)
  • your expenses (including utilities and living costs)
  • the amount you’re borrowing
  • your debts
  • your credit report and score
  • the amortization period