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What's a down payment?

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A down payment is a lump sum deposit towards the purchase of a home.You can put down as much as you want, or as little as 5% depending on the value of your home.

If your down payment is less than 20% of the home's value, you also need mortgage default insurance. The premium is usually added to your mortgage. For more information about buying a home in Canada, go to Canada Mortgage and Housing Coporation.

If you're a first-time home buyer, you may be eligible for the federal government's Home Buyer's Plan (HBP). You and your spouse or common-law partner may withdraw up to $35,000 each from your Registered Retirement Savings Plan (RRSP), which could help you buy a home. Certain repayments are required.

Learn more about the Home Buyer's Plan (HBP).

"SIMPLII FINANCIAL" and the SIMPLII FINANCIAL DESIGNS are trademarks of CIBC. "Simplii Financial" is a division of CIBC. Banking services are not available in Quebec.
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