I always find a major factor that stops people from being able to purchase a home or a property is the downpayment. Costs of homes in the GTA are at an unreachable level for many – or at the most part – people are stretched to their limit trying to afford housing and balance all of life’s expenses. Here are the numbers and the facts regarding your initial downpayment. Arming yourself with information is the first step to achieving the goal of home ownership.
How much do you need? Not surprisingly, most Canadian homebuyers purchase a property with the absolute minimum downpayment. The thing is, the minimum can vary, so you want to be sure you know how it’s calculated.
Will you live in the home? If the house will be owner-occupied, then you need 5% down for the first $500,000 of the purchase price, and 10% for any amount over $500,000 up to $999,999. If the purchase price is $1,000,000 or more, the minimum down is 20%.