How much of a down payment do I need to make, and what can I use for it?

In most cases, you will need a down payment of at least 5 percent of your home’s purchase price to qualify for a mortgage. If you put less than 20 percent down on your home, you must also pay CMHC mortgage insurance that will protect your lender if you default on your loan.

Traditional sources for a mortgage down payment include proceeds from the sale of stocks, bonds or property; personal savings; gifts from immediate family members; and withdrawal loans from your Registered Retirement Savings Plan. If you opt for a non-traditional source for your mortgage down payment, your CMHC mortgage insurance premium will be 0.15 percent higher than the premium for a loan with a traditional down payment source. Non-traditional sources for your down payment include funds that you borrow from another lender or gifts from non-immediate family members or friends.

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