Bill McLean Shannon McLeanSales RepresentativesWebsite sellingwithbillcomPhone © 2024© 2024© 2024Fax © 2024© 2024© 2024Email billmcleantrebnetcom Greater Savings with a Larger Down Payment The size of a down payment can vary Depending on the type of mortgage down payments generally range from 5 to © 2024 of the purchase price To obtain a conventional mortgage home buyers are required to put down at least © 2024 of the purchase price or appraised value whichever is less as a down payment If you dont have the necessary time or resources to save a full © 2024 down payment you can choose a highratio mortgage and buy a home with a down payment of as little as 5 This option is called a highratio mortgage and it requires you to purchase default insurance Whether you choose a conventional or a highratio mortgage one thing is almost always certain the larger your down payment the more you save in the long run Want more information Visit the Canada Customs and Revenue Agency Publication A larger down payment Reduces the amount of your monthly principal and interest payment Reduces the total amount of interest you pay over the life of your mortgage Ask about the RSP Home Buyers Plan The RSP Home Buyers Plan HBP lets a firsttime buyer withdraw up to © 20240 from RSPs for a home purchase The withdrawn amount must be repaid within © 2024 years subject to a minimum annual repayment that is © 2024 of the amount withdrawn If the full © 20240 is withdrawn the minimum annual repayment is © 2024 If less than the minimum is repaid in any particular year the balance is added to the taxpayers income Insuring Your HighRatio Mortgage CMHC or Genworth Financial may insure a mortgage for up to © 2024 of the lending value of the house Therefore purchasers do not need a large down payment Eligible borrowers include anyone who buys a home in Canada intending to occupy it as their principal residence And the availability of governmentbacked mortgage insurance is restricted to homes with a value of 1 million or less Purchasers can use up to © 2024 of their gross family income for payments of mortgage principal and interest property taxes and heating A buyers total debt load including consumer loans etc cannot exceed © 2024 of the gross family income People who insure a mortgage loan with CMHC or Genworth pay a premium The premium is based on the down payment and loan amount A list of the mortgage insurance premiums can be found here Cost Premiums can be paid up front or added to the principal amount of the mortgage Loan Amount Up to © 2024 of the lending value of the house Mortgage Term To be set by the lending institution Max House Price Varies by market Want more information Visit the Canada Mortgage and Housing Corporation or Genworth Financial websites