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Glossary
Mortgage

Down Payment

The portion of the home's purchase price you pay upfront, with the remainder covered by your mortgage. In Canada, the minimum down payment is 5% for homes under $500,000, 10% on the portion between $500,000 and $1,499,999, and 20% for homes $1.5 million and above. Putting less than 20% down requires mortgage default insurance (CMHC, Sagen, or Canada Guaranty).

Why It Matters

Your down payment directly affects your mortgage size, monthly payments, and whether you need mortgage insurance. A larger down payment means less borrowing, lower payments, and no insurance premium. It's often the biggest hurdle for first-time buyers in the GTA.

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