What’s the minimum down payment for mortgages in Canada?

In this video, I will answer a few key questions related to Bridge Financing:

At Red Key, mortgages are simple for us—let us make them simple for you.

Let’s talk about minimum down payments for mortgages in Canada.

  • For homes under half a million dollars, you’ll need a 5% down payment. It doesn’t matter if it’s your first home, your fifth home, or beyond—it’s still a 5% minimum.
  • For homes priced between $500,000 and $1 million, the requirement is 5% on the first $500,000 and 10% on the remaining amount.

But here’s the big news: as of December 15th, 2024, homes under $1.5 million can now be insured! This means you can buy with less than a 10% down payment and potentially secure lower rates when your mortgage is up for renewal.

For a second home or vacation home, the minimum down payment remains 5%. However, for a rental property, you’ll need 20% down.

Are you considering refinancing? You can borrow up to 80% of your home’s value—unless you’re building a secondary suite. Starting January 15th, 2025, you’ll be able to refinance up to 90% of your home’s value for this purpose.

Do you have any questions about your down payment? Contact us today to learn more!

Video Highlights:

Understanding Minimum Down Payments for Canadian Mortgages
An overview of the minimum down payment requirements for various property types and price ranges in Canada.

Minimum Down Payments for Homes Under $500,000

Details about the 5% down payment rule for properties priced below $500,000, regardless of whether it’s a first or subsequent home.

Down Payment Rules for Homes Between $500,000 and $1 Million
Explains the tiered down payment structure: 5% on the first $500,000 and 10% on the remaining value.

Big News for Homes Under $1.5 Million
Highlights the new policy effective December 15th, 2024, allowing homes under $1.5 million to be insured, enabling buyers to secure a mortgage with less than a 10% down payment and potentially lower renewal rates.

Down Payment Requirements for Second Homes and Rental Properties
Clarifies that second or vacation homes require a 5% down payment, while rental properties need a minimum of 20%.

Refinancing Options and Upcoming Changes
Explores current refinancing limits of 80% of home value and the upcoming policy effective January 15th, 2025, allowing refinancing up to 90% of the home’s value for building secondary suites.

Expert Guidance and Support from Red Key Mortgage
Emphasizes Red Key Mortgage’s role in simplifying the mortgage process and providing expert advice tailored to client needs.

Takeaways

Call Us Now
  • Affordable Homeownership: Homes under $500,000 require only a 5% down payment, making them accessible to a broader range of buyers.
  • Flexible Down Payment Tiers: The structure for homes priced between $500,000 and $1 million ensures manageable initial investments.
  • New Opportunities for Buyers: The December 15th, 2024, change enables insured mortgages for homes under $1.5 million, making higher-value homes more attainable.
  • Special Requirements for Specific Properties: Second homes require 5% down, while rental properties demand 20%.
  • Enhanced Refinancing Options: Starting January 15th, 2025, homeowners building secondary suites can refinance up to 90% of their home’s value.
  • Expert Assistance from Red Key Mortgage: Clients benefit from personalized advice and simplified processes, ensuring stress-free mortgage solutions tailored to their goals.
APPLY ONLINE NOW, IT’S EASY AND FAST!