Looking to buy a home?
Here’s what you should know about down payments in Winnipeg.
So you are gearing up to get a shiny new home. Congratulations! You earned it.
You must be thinking, “How much is the minimum downpayment?”. And "How much should I pay".
So let’s talk about it.
Minimum Down Payment
The national standard in Canada is 5% for a home costing 500,000 or less. If the house costs more than 500,000 then the minimum would be 5% for the initial 500,000 and 10% for the additional price up to $999,999.
Your lender may ask you to pay a higher downpayment if you are self-employed or your credit history isn’t so great.
Having the minimum downpayment is great but how much should you pay?
The Ideal Down Payment
The easy answer is, as much as you can.
People traditionally go for 20%. 20% down payment is good because it allows you to avoid loan insurance. Plus increasing your down payment reduces the total cost of your mortgage.
Finding the right downpayment isn’t always easy. It requires you to find that sweet spot between cost and benefit.
It’s always best to talk to an experienced Realtor or Mortgage Provider.
Looking to get into real estate? Need additional info on down payments?
Call John Frank at (204) 330-0676 or email firstname.lastname@example.org