How much would you need to come up with for a down payment these days?
In Canada, the minimum down payment depends on the purchase price of the property your thinking about buying. You would need a down payment of 5 percent of a home’s purchase price for a property worth $500,000 or less. When the purchase price is above $500,000 but under $1 million, the minimum down payment is 5 percent for the first $500,000 and 10 percent for the remaining balance and if the property is priced at over $1 million, you require a minimum 20 percent down payment, and the lender’s lending policies.
In addition to the down payment, you need to factor in the closing costs which include legal costs, taxes and land transfer fees — costs that can add another 1.5 percent to 4 percent of the purchase price to your up-front costs.
Right now its a great time to get into the market. Prices are stable, there are more homes to choose from and less buyers competing for the same home.
Wondering how much of a mortgage you can afford? Please call The Mash Team today for a no-obligation consultation! We will help you move!