So you are in the market to buy a new to you home. With the current real estate market being as hot ( due to limited supply) as it is make sure that you have the correct down payment in order before you put in your offer. High ratio mortgage insurance ( CMHC, Sagen and Canada Gurantee) is available for purchase prices less than 1,000,000. However to get into a home with the minimum required will depend on the purchase price of the property and of course your credit and income.
5% down payment is the minimum for purchase prices at 500,000 or less. If you are quick at math that is 25,000. However if the house that you really like you ended up getting an accepted offer at 760,000. You will put down 5% of the 1st 500,000 and 10% of the balance. So in this example you will put down 25,000 on the 1st 500K and 26,000 on the remaining 250,000 making it a total of 51,000 down payment. This is compared to putting down 20% which would cost you 152,000.
This 5% down payment should come from your own resources and you will need to provide 90 days history to show that you have not borrowed the funds. However you can receive the 5% down from a blood relative (Mother, Father, Sister or Brother) , this is considered a gift so you don’t have to debt service ( have it included with your debt payments).
I also need to tell you that if you are buying here in Nova Scotia and you have excellent income and credit but are short on the down payment, we have a local lender who will do 0% down to get you in the new home. Ask me for details.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia, Ontario(M18001555) & in British Columbia(BCFSA #504098).