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Home Buyer's Guide - All About Mortgages

A Step-by-Step Guide on the Home Purchase Process

What effects your credit and how to improve your credit

Understanding what you can afford and what is looked at when getting a mortgage

What is required for a down payment on a home and other solutions to obtaining the required funds

Understanding the basic Mortgage Options

A list of the costs you should be prepared for

Down Payment

Down  Payments

Buying a house but don't have a 20% down payment? This is alot of money and is not always a viable option for many Canadians.  Luckily there is something called Canadian Mortgage Default Insurance which allows you to put less than 20% down.


The minimum down payment required under this Insurance is 5%. The big myth is that this is only for First Time Home Buyers, but on approved credit this is available to most applicants!




Down Payment the amount of cash required in order to receive a mortgage on a home. Minimum required is 5%


Mortgage Default means the borrower has not done everything the borrower is required to do under the mortgage agreement. The most common default is missed or late payments


Mortgage Default Insurance (“mortgage insurance”) is an insurance policy that compensates a mortgage lender (a bank) for losses caused by a mortgage default. This premium will be included in your mortgage and does not need to be paid upfront.


How mortgage insurance works If a borrower stops making mortgage payments or breaches the mortgage contract in some way, the bank may “enforce” its mortgage. Normally this means taking legal action to sell the property and recover what the borrower owes under the mortgage. The lender will attempt to recover the balance of the mortgage, unpaid interest and legal fees. If the lender does not recover the full amount owing, the mortgage insurer will pay the lender the amount of the shortfall. The mortgage insurer may then take legal action to collect the shortfall from the borrower, if permitted under applicable law.

Source of Down Payment

  • Savings Account

  • Gifted Funds from Family

  • Sale of Property or Equipment

  • Gifted Equity 


  • Borrowed from bank

  • TFSA

  • RRSP

  • And more...


Tips on Down Payment


A Tax Free Savings Account can be a great place to save your down payment. Your money can grow tax free in this account, which means you won’t have to pay income tax on the money you earn as it grows. 


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