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 Office: 613-596-4133


Greater Savings with a Larger Down Payment

The size of a down payment varies. Down payments generally range from 5% to 20% of the purchase price, depending on the type of mortgage. 


To obtain a conventional mortgage, home buyers must put down at least 20% of the purchase price or appraised value (whichever is lower) as a down payment. For a $300,000 property, this totals $60,000.


If you do not have the time or resources required to save a full 20% down payment, you may instead opt for a high-ratio mortgage to purchase a home with a down payment of as little as 5%. For a $300,000 property, this totals $15,000. A high ratio mortgage requires you to purchase default insurance (mortgage insurance).


NOTE: New mortgage regulations implemented in early 2016 require more than 5% down when purchasing a property above $500,000. 


Regardless of which mortgage option you choose, one fact remains constant: the larger your down payment, the more money you save in the long term.


For more information, visit about the advantages of a larger down payment, visit the Canada Customs and Revenue Agency Publication.

A larger down payment...

  • Reduces your monthly principal and interest payment
  • Reduces the amount of interest you will pay over the life of your mortgage

Ask about the RRSP Home Buyers' Plan


The RRSP Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to $25,000 from registered retirement savings plans (RRSPs) to purchase a qualifying home. The withdrawn amount must be repaid with in a 15-year window and is subject to a minimum annual repayment of 1/15 of the total amount withdrawn. If the full $25,000 is withdrawn, the minimum annual repayment is 1,333. If the buyer repays less than the minimum requirement, the balance is added to the taxpayer’s income.

Insuring Your High-Ratio Mortgage

Mortgage insurance providers such as CMHC or Genworth Financial may insure a mortgage for as much as 95% of the lending value of the house. Therefore, buyers do not require a large down payment. If you buy a home in Canada and intend to occupy it as your principal residence, you qualify as an eligible borrower. NOTE: government-backed mortgage insurance is restricted to homes with a value below $1 million.


Buyers can use up to 39% of the gross family income toward mortgage principal and interest payments, property taxes, and heating. A purchaser’s total debt load (including consumer loads) cannot exceed 44% of the gross family income.


Insuring a mortgage loan with an institution such as CMHC or Genworth requires a premium. The premium is calculated based on the down payment and loan amount. A list of the mortgage insurance premiums can be found here.


Premiums can be paid up front or can be bundled with the principal amount of the mortgage.


Loan Amount
Up to 95% of the lending value of the home.


Mortgage Term:
To be set by the lending institution.


Max. House Price:
Varies by market.


For more information about down payments, mortgage insurance, conventional mortgages, and high-ratio mortgages, visit the Canada Mortgage and Housing Corporation or Genworth Financial websites.


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Coldwell Banker Sarazen Realty's mission is to furnish our skilled Real Estate Professionals with progressive brokerage technology and support, empowering them to provide clients with the ultimate buying and selling experience. 


Phone: 613-596-4133
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