the down low on the down payment
As you probably guessed, the bigger the down payment the less you actually end up borrowing for the principal amount of your mortgage. That means you will end up paying less interest in the end and you actually reduce the amount of your monthly mortgage payment.
Home buyers’ plan
One other down payment option to consider is the Government of Canada’s Home Buyers’ Plan. This federal government program allows you to borrow money from your RRSP (registered retirement savings plan) to buy your home, as long as you meet certain conditions like repaying it within a period of no more than 15 years. Under this plan you can withdraw up to $25,000 (or $50,000 per couple) tax-free from your RRSP savings and apply it towards a down payment on your home.
Generally speaking, the amount of your down payment is ultimately going to depend on your individual situation. Our associates will work with you to help put a savings plan in place so you can save for your down payment, no matter what size.