Income property in Canada

by Leigh
(Ottawa)

I was always under the impression that there needed to be a minimum of 25% down on an investment property in Canada. Is this true? I understand the obvious reason for putting more down to CMHC but what if you do not have 25%, can you still put 5% or does that new place have to become your primary residence in order to do that?

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Nov 30, 2012
 RE: Income property in Canada
by: Tom Karadza

Thanks for the question!

These rules are always changing but here's what you should know:

1. For banks that use CMHC as their insurer the minimum down payment is 20%.

2. 5% is no longer available.

3. Other insurers like Genworth or Canada Guarantee may have other options for you though. Check with a good mortgage broker because typically their mortgage insurance products are not available through the banks.

Hope that helps!


Tom.

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