Let’s talk about down payment and a question we get asked often.
I’m surprised that many people still think that only first time home buyers can put 5% down payment on a purchase of a home and so let’s clear that up. If you are buying a primary residence (where you will live) you can put as little as 5% down payment. The same goes if you’re thinking of buying a second home, you can do that with as little as 5% down payment. For those of you thinking of purchasing a cottage this is ideal especially if you don’t have more than 5% down payment.
So when do you have to put 20% down payment you ask? When you’re looking to buy a rental property. With rental properties, lenders require you will need a minimum of 20% down payment.
At the end of the day, always contact your mortgage broker if you have questions. We are always happy to help you sort out the details to make informed decisions.
Hope that clears this up.
As always let us know if you have questions you want answered.
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