Buyer’s Guide: How Much Should Your Down Payment Be?

If you are thinking of jumping into the Windsor real estate market, one question you may have is “how much should my down payment be”? This is especially true for first time homebuyers as they start their search for houses for sale in Windsor. Your Windsor REALTOR® will help walk you through the whole mortgage process but it is a good idea to have this base knowledge before you start looking for Windsor homes for sale. Even if you’re not ready just yet but will be in the future, this guide can help you create savings goals so when the time comes you are ready to act!

Let’s start with homes under $500,000. This is the price range almost all first time home buyers will be in. In Canada, the minimum down payment you must have when purchasing a home is 5%. So if you're buying a home for less than $500,000, you're required to put 5% down at minimum.

Next we’ll look at the $500,000-$999,999 price range. If you are looking for a home in this price range it is our suggestion that for the first $500,000 you put down 5%. For anything above and beyond the $500,000, put down 10% of that amount.

Finally, the $1,000,000+ price range. Definitely not the place almost any first time home buyer will find themselves. This is the dream property you aim for one day. In Canada, for the purchase of a home that is $1,000,000 or more, you are required to have a down payment of at least 20%.

One final thing to know and remember when planning your savings for the purchase of a new home. Any down payment of less than 20% requires you to also get mortgage default insurance. This is all just a starting point, if you are serious in the market, reach out and we’ll get you set-up with a Jumper who’ll not only guide you through the mortgage process but also make sure you end up in the right home for you!

(courtesy: The Balance)

Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, and Chatham, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!