5% Down Payment NOT just for First Time Buyers

Canadian Mortgage Default Insurance​

You're buying a house but you don't have a 20% down payment? RELAX - Neither does anybody else!

This is a lot of money and is not 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 big myth is that this is only available for First Time Home Buyers - NOT TRUE - it's available for all owner occupied homes!

When you get a mortgage with this coverage you will pay a one time premium that gets added to your mortgage. That coverage insures your Lender against any losses if you default on your mortgage. The more money you have down the less your premium will be.

There are 3 Mortgage Default Insurance companies in Canada. CMHC, Genworth, & Canada Guaranty.

The minimum down payment will be 5% of anything under $500,000 and 10% of anything over $500,000. Example: If you purchase a home for $600,000 your minimum down payment would be $35,000 ($500,000 x 5% + $100,000 x 10%)

This minimum down payment can apply to the following:

Owner Occupied Home - Regardless of how many homes you have owned or currently own

Second Home - If you already live in a home that you own and plan to stay there, you can apply to purchase another one with this minimum down payment, as long as you or someone in your family will be living there rent free.

Rental Investment property - Rentals that have 2 units where you will be residing in at least 1 of the units, you can purchase with this minimum down payment. Such as a Duplex.