HOW MUCH DO I NEED FOR MY DOWNPAYMENT?
While it is possible to buy a home with as little as 5% down, the amount of your downpayment will determine whether you'll have a conventional mortgage or an insured, high-ratio mortgage.
Whats the difference?
Conventional mortgage: means your downpayment is at least 20% of the purchase price.
High-ratio mortage: means your downpayment is less than 20% of teh purchase price. High-ration mortgages must be insured by a third party such as Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada and require you to pay an insurance premium.
The Insurance Premium:
Will depend on the amount you are borrowing and the percentage of your downpayment (typically the premium is up to 2.75% of the total mortgage amount).
Can be added to the principal balance and paid off as part of your mortgage, or paid off in a lump sum at the time of purchase.
Dawson Creek Realty - Ph: 250.782.8181