How much down payment is required when I buy a home in Canada? Matthew Fernandes talks about the down payment structure here in Canada. Source: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html What is a minimum down payment A down payment is the amount of money you put towards the purchase of a home. Your lender deducts the down payment from the purchase price of your home. Your mortgage covers the rest of the price of the home. The minimum amount you need for your down payment depends on the purchase price of the home. If your down payment is less than 20% of the price of your home, you must purchase mortgage loan insurance. The minimum down payment based on the purchase price of your home $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, your lender may require 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. Example: How to calculate your minimum down payment The calculation of the minimum down payment depends on the purchase price of the home. What is mortgage loan insurance Mortgage loan insurance protects the mortgage lender in case you can’t make your mortgage payments. It doesn’t protect you. Mortgage loan insurance is also sometimes called mortgage default insurance. If your down payment is less than 20% of the price of your home, you must buy mortgage loan insurance. Your lender may require that you get mortgage loan insurance, even if you have a 20% down payment. That’s usually the case if you’re self-employed or have a poor credit history. Mortgage loan insurance isn’t available if: the purchase price of the home is $1 million or more the loan doesn’t meet the mortgage insurance company’s standards Your lender coordinates getting mortgage loan insurance on your behalf if you need it. Cost of mortgage loan insurance The fee you pay for mortgage loan insurance is called a premium. Mortgage loan insurance premiums range from 0.6% to 4.50% of the amount of your mortgage. Your premium depends on the amount of your down payment. The bigger your down payment, the less you pay in mortgage loan insurance premiums. Check out our other video on the current supply and demand in the Toronto Real Estate Market. https://www.youtube.com/watch?v=2uHL5xcHmr0&t=125s ⏰ Timestamps ⏰: 0:00 Introduction 1:15 Answer 3:07 Over 1 Million Dollar Purchase Price 3:32 Mortgage Insurance 5:02 Subscribe, Like & Comment 5:29 Mortgage Insurance 6:10 Mortgage Brokers / Advisors ▸▸▸FOLLOW US ON INSTAGRAM FOR UP TO DATE CONTENT: https://www.instagram.com/matthewfernandesgroup/?hl=en MATTHEW FERNANDES GROUP Why Choose Us To Buy Or Sell Your Home? Simple. Our Proven Results And Happy Clients. ••••••••••••••••••••••••••••••••••••••••••••••••••• 💻www.MatthewFernandes.ca 📧matthew@matthewfernandes.ca •••••••••••••••••••••••••••••••••••••••••••••••••••• ▸▸▸PLEASE SUBSCRIBE: Please make sure to "like" this video and subscribe to our channel. This will keep you up to date on our newest videos covering everything real estate & much more! #realestate #torontorealestate #downpayment