A minimum cash down payment will be required when purchasing a home. Using a conventional mortgage, a lender will normally provide up to 80% of the appraised value or purchase price of a property, whichever is less. In some cases, a purchase can be financed up to 95% under a high-ratio mortgage. However, this mortgage type is required by law to be insured against non-payment by the Canada Mortgage and Housing Corporation, Genworth Canada or Canada Guaranty.
At least 20% down payment of the total purchase price (or appraised value) would be ideal to qualify for a conventional mortgage and to be exempted from paying the mortgage insurance premium. With a larger down payment, it will be easier for you to manage a mortgage. You’ll get a lower interest rate and accumulate more equity in your home.