Short answer
In Ontario you need 5% down on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million. Above $1.5 million you need 20%. Under 20% down you also pay default insurance, which is added to the mortgage rather than paid up front.
Worked examples
A $600,000 home. 5% of the first $500,000 is $25,000, plus 10% of the remaining $100,000 is $10,000. Minimum down payment $35,000.
An $800,000 home. $25,000 plus 10% of $300,000, so $55,000.
A $1.6 million home. 20% of the whole price, so $320,000, with no insured option at all.
Default insurance
Under 20% down your mortgage must be insured. The premium runs roughly 2.8% to 4% of the loan depending on how much you put down, and it is added to the mortgage rather than paid in cash. In Ontario you do pay provincial sales tax on that premium up front.
Where the money can come from
- Savings, a TFSA, or a First Home Savings Account
- Up to $60,000 from an RRSP under the Home Buyers’ Plan, per person
- A gift from an immediate family member, with a signed gift letter
- Equity from a property you already own
Whatever the source, lenders want to see 90 days of history on the money. A large deposit appearing the week before closing creates a problem, so move things early.
What most buyers actually put down
Around 5 to 10% is normal for first-time buyers in Barrie and Simcoe County. Twenty percent avoids the insurance premium and opens up refinancing later, but waiting years to save it while prices move is not automatically the better trade.
If you are working out what you would need for a specific price range, would it help to run the numbers together?
General education, not financial advice. Figures are illustrative and subject to lender approval (O.A.C.). Lora Fenn, Mortgage Agent Level 1, Lic. #M25003153. Dominion Lending Centres YBM Group, FSRA #11129. 705-881-2780 · lfenn@dominionlending.ca
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