Down Payment

It is generally not possible to obtain a mortgage for the full value of a home or other property. Lenders expect the purchaser to contribute some of their own money towards the purchase. This initial financial contribution of the buyer is known as the down payment.

Most lenders require a minimum down payment of 5% of the purchase price. If your down payment is less than 20% of the purchase price you are required, by Canadian law, to purchase mortgage default insurance.