The minimum down payment to buy a home in Montreal/Quebec is currently 5% of the total purchase price. With ever changing laws and regulations this could soon increase to 10%.
Depending on the financial lender and your personal situation, they may also ask for more than 5%. The best way to know for sure is to get a pre-approval before you start your property search. At least you know exactly what your buying power is and how much you will be required to put down.
Most financial lenders will also make you pay for mortgage insurance if you are putting down less than 20% of the homes value. The cost of this can range, but is generally 1.8% - 3.6% of your total mortgage amount. This can be added to your total loan, or can be paid once off when the loan is aquired.
- Example 1: if you are looking to buy a home for $300,000, you are required to put down at least $15,000 (5%). In this case you will be required by your financial lender to take out mortgage insurance, an amount which will be added to the principal of your overall loan.
- Example 2: if you are looking to buy a home for $300,000 and want to avoid paying mortgage insurance, you will need to put down at least $60,000 (20%)
If you already have your down-payment and ready to start your home search, we suggest you get started with a free property alert which will notify you the moment a property in your EXACT criteria hits the market.