What Is The Minimum Deposit For A Home Loan?

What Is The Minimum Deposit or Down payment For A Home Loan?

Friday May 03rd, 2019

Share

Saving the down payment to buy a home can seem overwhelming. First-time home buyers and those who've gone through the process before can experience the same anxiety. But it doesn’t have to be that way.
Sometimes saving for a down payment is as simple as making small changes to your budget or exploring other financing options. Both could help you save more money and reduce the amount of mortgage you need.
The amount of your down payment influences the property you can afford, the type of mortgage you get and whether you need to purchase mortgage default insurance.
 
Minimum down payment requirements:
  • For homes that cost up to $500,000, the minimum down payment is 5%
  • For homes that cost more than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance
  • For homes that cost $1 million or more, the minimum down payment is 20%
  • Down payment amounts
 
 

Post a comment