HOW MUCH DOWNPAYMENT DO I NEED WHEN BUYING A HOME?

What is the minimum amount required for downpayment when purchasing a home in the greater Toronto area?

Due to recent changes from CMHC, the minimum amount required for down payment depends on your employment situation and purpose of your purchase.

If you are self employed, you will need to put down a minimum of 10%.

If you are going to be renting out the home or condo and not living in it yourself, you need to put down a minimum of 20%.

If you are fully employed and not self employed and plan to live in the home as your principal residence you need a minimum of 5%.

The best advice, however is that the larger your downpayment the less interest you will be paying in the long run and that could amount to some hefty savings for your pocket book.