Understanding Down Payment Requirements When Buying a House in Calgary

Dated: March 29 2024

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Are you considering buying a house for yourself, or as an investment in Calgary? Understanding the affordability factors is crucial to planning for this significant investment. One essential aspect to grasp is the down payment requirements. Let's dive into what you need to know:

What is a Minimum Down Payment?

A down payment is the initial amount of money you put towards the purchase of a home. Your lender deducts this down payment from the overall purchase price of the home, and your mortgage covers the remaining balance.

The minimum down payment you need depends on the purchase price and whether you are buying the home to live in or as an investment. Here's a breakdown for purchasing the home for yourself:

  • For homes priced at $500,000 or less: You'll typically need to provide a down payment of 5% of the purchase price.
  • For homes priced between $500,000 and $999,999: You'll need 5% of the first $500,000 of the purchase price, plus 10% for the portion of the purchase price above $500,000.
  • For homes priced at $1 million or more: A down payment of 20% of the purchase price is typically required.

It's important to note that if your down payment is less than 20% of the purchase price, you'll likely need to purchase mortgage loan insurance.

Understanding Mortgage Payments:

Another crucial consideration is understanding what your mortgage payments will look like based on the purchase price and down payment. Your mortgage payments will depend on various factors, including the interest rate, loan term, and down payment amount.

Additionally, if you are purchasing the property as an investment or rental, you are required to provide a 20% down payment.

Thinking About Buying or Selling This Year?

If you're considering buying or selling a home in Calgary this year, it's essential to have a clear understanding of the financial aspects involved. Whether you're a first-time buyer or a seasoned homeowner, navigating the real estate market can be complex. That's where we come in.

Get in touch with us today to discuss your real estate goals and how we can help you achieve them. Whether you're looking to buy, sell, or invest, we're here to guide you every step of the way.

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Kowall Boutique Real Estate

Daniel Kowall and Tali Kowall (Kowall Boutique Real Estate) are a real estate team with EXP Realty in Calgary AB, Canada. They dedicate their time to helping people wanting to live or living in Calgar....

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Are you considering buying a house for yourself, or as an investment in Calgary? Understanding the affordability factors is crucial to planning for this significant investment. One essential aspect

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