Date: June 1, 2022


Do I have to put 20% down on the purchase of my second home?


You do not have to put a 20% down payment on a second home.

You can own a home currently and purchase another ‘second home’ for your family member to live in or a cottage for your family. That property does not need to be purchased with a 5% down payment.

Similarly, if you are no longer a first-time home buyer, you can still buy a home with as little as a 5% down payment.

What you need to know:

If you purchase a home with less than a 20% down payment, the mortgage will be insured, and you will have a default insurance premium added to your purchase.

For example:

$500,000 purchase price

$25,000 down payment of 5%

$494,000 mortgage amount, which includes the $19,000 insurance premium. This premium is added to the mortgage and required in advance.

The maximum amortization will be 25 years. If you want a 30-year amortization, you will need a 20% down payment.

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Ana can be reached at 905.870.0513 or you can email her at

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