If I wanted to buy a house for approx...?

Question

$300,000 - How small of a down payment would I need?

$200,000 - How small of a down payment would I need?

Approx.

I am in Canada by the way.
Thanks!!

Answer 1

If you want to avoid paying PMI (this is the insurance that the bank takes out against you defaulting on your loan), then you should put down 20%.

So for 300,000 - put down 60,000

for 200,000 - put down 40,000

If you don't mind paying PMI or if you can't put down that much there are loans that exist where you can pay as little as 3% (that would be 9,000 or 6,000 for you). Good luck and happy homeownership!

The loan that a previous poster was taking about is an FHA or Vetrens loan for first time homeowners. This is only in the States, but something similar may exist in Canada. Your bank loan officer should know about programs like this.

Answer 2

You usually put down 5 to 10 %. But there are loans in the USA that are for first time homebuyers and you don't need any money down and you get a lower interest rates. Maybe they have something like this in Canada.

Answer 3

most mortgage companies have programs for 0 down if you are a first time buyer other than that it ranges from 5 to 20%