Down Payment

When purchasing property, lending institutions are not permitted to finance more than 75 % of its value or price paid, except if the loan is insured by the Canada Mortgage and Housing Corporation (CMHC). In doing so, the CMHC charges a premium based on the down payment of the prospective buyer. Higher is the down payment, lower is the risk of foreclosure, and thus lower is the premium. Here are a few examples:

OWNER-OCCUPANT

CASH	PREMIUM
0 % (Posted rate + cash back)	2,90 %
5 %	2,75 %
10 %	2.00 %
15 %	1.75 %
20 % + (exceptions)	0.65 %
20 % + (conventionnal)	-----------

NON-OCCUPANT OWNER

CASH	PREMIUM
20 % + (conventionnal)	-----------

The minimal down payment will vary depending on the type of property purchased.

TYPE OF PROPERTY	DOWN PAYMENT
Single-family	0 %
Duplex	0 %
Triplex	10 %
Quatruplex	10 %
5 and more	15 %

Note that the minimal down payment is always 15 % for a non-occupant owner (investor) regardless of the type of property. Furthermore, the latter must demonstrate a net value in assets of $ 100,000.00, excluding his down payment.

See sub-site: New Products