Mortgage Tips – Down Payments

Down payments

How much am I supposed to put down?

A down payment is the amount of money that you pay at the time of purchase towards the price of your home.  When buying a home, the minimum down payment is at least 5% of the purchase price.

For Example: To buy a home that costs $250,000 you will need a minimum of $12,500 as your down payment.

TIP

If your down payment is less than 20%, you will have to purchase mortgage default insurance, which could add to your costs.  Save as much as you can for your down payment.  A larger down payment means you need a smaller mortgage, which will save you thousands in interest charges!

Original article from:  http://www.fcac-acfc.gc.ca/eng/forConsumers/topics/mortgages/Pages/Mortgage-Hypotheg.aspx

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