Q. What is the minimum down payment needed for a home?
A. A minimum down payment of 5% is required to purchase a home, subject to certain restrictions. In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, and any taxes, where applicable).
Lenders will generally accept a gift from a family member as an acceptable down payment provided a letter stating it is a true gift, not a loan, is signed by the donor.
Mortgages with less than 20% down payment or equity are required to have mortgage loan insurance provided by CMHC, Genworth Financial Canada, or Canada Guaranty.
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