Down Payment Calculator Ontario

What is a Down Payment?

A down payment is the portion of a home's purchase price that a buyer pays upfront at closing. In Ontario, the amount you need to put down depends on several factors, including your credit score, the type of mortgage you get, and whether you qualify for any government programs.

The down payment is typically expressed as a percentage of the home's total price. For example, if you're buying a $400,000 home with a 5% down payment, you would need to pay $20,000 upfront.

Ontario Down Payment Rules

Ontario's down payment requirements vary depending on the type of mortgage you're applying for. Here are the key rules:

• Conventional Mortgages: Require a minimum 5% down payment.
• First-Time Homebuyer Programs: Offer lower down payments (2.5% or 0%) for eligible buyers.
• Insured Mortgages: Allow for lower down payments (5% to 10%) with mortgage default insurance.
• Strata Properties: May have additional requirements for down payments and closing costs.

It's important to check with your mortgage broker or financial institution to understand the specific down payment requirements for your situation.

How to Calculate Down Payment

Calculating your down payment is straightforward once you know the home price and your desired down payment percentage. Here's how to do it:

1. Determine the purchase price of the home.
2. Choose your down payment percentage (e.g., 5%, 10%, or 20%).
3. Multiply the home price by the down payment percentage to get the down payment amount.

For example, if you're buying a $500,000 home with a 10% down payment, your down payment would be $50,000.

You can use our down payment calculator above to quickly determine how much you need to save for your down payment.

First-Time Homebuyer Programs

Ontario offers several programs to help first-time homebuyers with their down payment and closing costs. These programs can provide financial assistance, lower down payment requirements, or reduced mortgage rates.

Some of the key programs include:

• Ontario Home Buyers' Plan (OHBP): Provides a down payment grant of up to $10,000 for eligible buyers.
• First-Time Home Buyer Incentive (FTHBI): Offers a 5% discount on the first $500,000 of a home purchase.
• Shared Equity Mortgage Program: Allows for lower down payments (2.5% or 0%) with shared equity.

To qualify for these programs, you typically need to meet income and credit score requirements, and you must be a first-time homebuyer in Ontario.