To buy a home with 5% down, you’ll need to meet the following:
- owner occupied property (not a rental property or investment property)
- provable income
- purchase price of less than $500,000
- in most cases, Canadian residency would be required
- the ability to prove a 12 month history of good credit (if you just moved to Canada, there are many countries that we are able accept an international credit report from to meet this condition if you don’t have a full 12 month history of credit in Canada)
You’ll need 10% down if your situation looks more like this:
- self employed with less than a two year history of income taxes as a self employed person
- purchase price of $500,000 or higher (the 10% applies to any amount over the $500,00. It’s still 5% on the first $500,000)
- established Canadian credit history, but not yet a permanent resident (ie. in Canada on a work permit)
Situations where you would need 20% or more down would include:
- purchase of an investment property
- poor credit
- purchase price of a million dollars or higher
If you’re not sure where you fit, or you’d like more information, get in touch with us! We’d love to hear from you 🙂
