Answer: There are programs available that allow 5% of the purchase price or appraised value as a minimum down payment. This applies to property valued at $500,000 or less. For properties valued at $500,001-$1,000,000 the requirement is 5% on the first $500,000, and 10% on the balance.
For purchases over $1,000,000 you require a minimum of 20% down.
The down payment must be from your own resources or a financial gift from an immediate relative. You also have to show that you are able to cover closing costs of 1.5% (approx.) of the purchase price.
Down payments can be saved in various investments including First Time Home Buyers Savings Plans (FTHBSP), Registered Retirement Saving’s Plans (RRSP), Tax Free Saving’s Accounts (TFSA). Speak to your mortgage professional for potential benefits.