03. When is my Down Payment Due?
When initially offering on a property, it is recommended to put down a minimum of 5% of the purchase price as a “deposit” which will be due within 24 hours of acceptance of an offer. While your deposit will form part of your down payment, it is important to note that the deposit and down payment are two different things and your total down payment will be due at closing. Shortly before your closing date, your lawyer will walk you through all of the disclosures and terms & conditions in your Agreement of Purchase and Sale, including a statement of closings costs associated with the transfer. It is at this time where you will decide and submit the remaining funds that will contribute to your total down payment for your purchase, and the remaining balance will be your mortgage amount.
04. How much money do I need to purchase a property?
As a first-time home buyer, you’ll want to ensure that you have enough capital saved up and accessible to cover the initial down payment, as well as various closing costs associated with your purchase. As mandated by the Canadian Government, a minimum of five percent of the purchase price is required for any down payment of property; however, depending on the circumstance and investment goal, it is recommended to put down as much as possible to minimize the costs associated with insured mortgages.
