House Hunting Down Payment Requirements

 

For many people, the hardest part of buying a home is saving enough money for a down payment. The bigger the down payment, the smaller the amount of your mortgage loan. If you've arrived in Canada within the last 36 months, you may qualify for Genworth's or CHMC  New To Canada  product, which allows you to buy with as little as a 5% down payment.

A down payment of 20% or more of the property will qualify you for a conventional mortgage. If it is less than 20% you will pay for mortgage default insurance. Mortgage default insurance enables buyers with low down payments access to the same competitive mortgage interest rates as buyers with larger down payments. It’s insurance which guarantees the mortgage by protecting the lender should you be unable to make your mortgage payments for unforeseen reasons.

Genworth Financial Canada is the largest private sector supplier of mortgage default insurance in Canada. Mortgage default insurance is also available from several other providers in Canada like CHMC. Your lender will both inform you about, and arrange for, mortgage default insurance.