Home Purchase Mortgage Toronto by Mortgages By Erin

Home Purchase Mortgage Toronto ON

Toronto Mortgage Broker with 10+ years of experience

Arranging financing that suit the clients needs once they have an accepted offer on a residential property.

Whether you’re a first-time homebuyer, or looking to buy a second home or investment property, you more than likely will need to obtain a mortgage.

If you’re purchasing a principal residence, you can do so with as little as 5% down, assuming the purchase price is $500,000 or less.
If you’re purchasing for more than $500,000 but less than $1mil your minimum down payment is based on a sliding scale.

If the home you’re looking to buy is going to cost $1million or more, the standard minimum down payment is 20%, but is again subject to a sliding scale.

Similarly, investment properties also require a minimum of 20% down.

You’re probably wondering what a sliding scale is.
The sliding scale helps determine the minimum down payment, based on the purchase price. You’ll notice that as a property price increases, so does the minimum down payment.

As mentioned above, if you purchase a property for $500,000 or less, the minimum down payment is 5%. When the purchase price exceeds $500,000, the minimum down payment is 5% for the first $500K, and 10% for the remaining portion.

If your purchase price is $1,000,000 or more, the minimum down payment is typically 20% of the purchase price up to $1,200,000 – and an additional 50% of any amount over. This sliding scale can some times vary between lenders.

Example:

You’ve just bought an owner-occupied property for $750,000

Your minimum down payment would be:

5% of the first $500,000 = $25,000

10% of the balance ($250K) = $25,000

Therefore, the minimum down payment under this scenario would be $50,000

Whether you're buying your first home or your next one, we can help you. Call Our Toronto Mortgage Broker Today!

We offer Home Purchase Mortgages to clients across Ontario including the following areas: North York, Scarborough, Etobicoke, Toronto, Mississauga, Markham, Vaughan, and Richmond Hill, ON and across Quebec including the following areas: Montreal Mortgages, Laval Mortgages, Gatineau Mortgages, Sherbrooke Mortgages, Quebec City Mortgages, Trois-Rivières Mortgages, Chicoutimi-Jonquière Mortgages, and Saint-Jérôme Mortgages.

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