A down payment is the amount of money, including initial deposit, you put towards the purchase price of a any time item. IT can be a home too
Many times, especially the first time time buyers have a question in mind how much down payment should they make when buying a home. Can I buy a property with 5% down payment?
depending upon wherever you live. You must talk to local professional dealing with it. The following scenarios will clear your doubts.
Please have a closer look. This is relevant from Canadian prospective. Your local provincial laws may differ.
- For homes that cost up to $500,000, the minimum down payment is 5%
- For homes that cost between $500,000 and $1,000,000, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance
- For homes that cost over $1,000,000, the minimum down payment is 20%
For down payments of less than 20%, home buyers are required to purchase mortgage default insurance.
Mostly, big part of down payment is paid at the time of closing and a real estate layer can help you in closing the real estate deal