This is really common question asked by almost every client.

How much Down payment  should I need to make?

Down payment is the payment which will help Lenders in calculating Loan to value ratios. It is amount which puts towards the purchase of your home and Lender deduct this down payment from Purchase price of the house for LTV ratios. It also depends on purchase price of your home. Here is some calculation need to be done.

If the purchase price is below $500,000, the minimum down payment is 5%.
If the purchase price is in between $500,000 and $999,999, the minimum down payment is 5% of the first $500,000, and 10% of any amount over $500,000.
If the purchase price is $1,000,000 or more, the minimum down payment is 20%

For example- Home price is $750,000 so in this case the calculation will be as follows

5% of first $500,000= $25000
10% on balance $250,000=$25000

so in total you will pay $50,000 as down payment.

If you make 20% down payment then, you do not need Mortgage default insurance called as CMHC insurance but if the down payment is below 20% then it is mandatory to have CMHC insurance. It helps Lenders to cover the risk if homeowner default at not paying the mortgage due to any reasons.