I heard today, on 2 separate occations, people thinking that they need more than 5% of the purchase price as a down payment on a house or condo.
With the changes CMHC made this year and in 2010, I guess some people are confused.
The changes were made to the amortization, or the length of the mortgage the payments are based on, and the refinancing rules.
There has been no change to the minimum amount you need to put down.
5% down is the minimum to get best rates. But with the low rates were are experiencing now, you can even get away with 0% down. There are certain conditions that apply to that type of mortgage though so please ask me if you think that might suite you.
If you ever hear of anyone thinking they need 10% or even 15% down on a purchase, please have them call me so I can explain the actual numbers with them.
5 year fixed mortgage rates are continuing to drop and there is no expected increases coming.
Have a great weekend and please pass the word on about the minimum down needed!!