How Much of a Down-Payment is Needed by First Time Home Buyers?
The answer to this question is dependent on whether you are a Salaried Employee for Self-Employed.
Salaried Employees – Minimum 5% Down-Payment
If you are an employee the required down payment for a 1 – 2 unit owner occupied residential property is 5%. For a 3 – 4 unit owner occupied residential property the minimum down payment is 10%.
The Down Payment can come from any of the following traditional or non-traditional sources:
Traditional | Non – Traditional |
| Generally, any source that is arm’s length to and not tied to the purchase or sale of the property.
|
Recommended Minimum Credit Score: | Recommended Minimum Credit Score: |
| ** Equifax Credit Scores Online: https://www.econsumer.equifax.ca/ca/main | |
Self -Employed – Minimum 5% to 10% Down-Payment
Self-Employed borrowers with more than 3 years in the same business who can prove income via a 3rd party and Commissioned Income Borrowers will be treated as if they are Salaried Employees. (Above).
Self-Employed borrowers with less than 3 years in the same business and can’t provide income proof via 3rd party will need to provide a minimum 10% Down Payment for 1 – 2 unit residential properties.
All traditional sources of Down Payment will be acceptable except Gifted Down Payments. No Non – Traditional sources.
Recommended Minimum Credit Score is 650
Unsure What To Do Next?
Reserve Your Free No Obligation Consultation Today by completing the form to your right:
In your free consultation you will discover…
- How to ensure quick approval for your financing
- How to qualify for easy and comfortable monthly payments
- How to avoid the costly financing pitfalls
- How to get the required financing you need and deserve
- Which mortgage products you qualify for or best suite your needs
- What your Maximum Purchase Price
Helping all aspiring Home Owners Achieve The Dream of Home Ownership
