“What if I have less than 25% of the purchase price for a down payment?”
When you need a mortgage that is more than 75% of the purchase price of your home, mortgage loan insurance is generally required. You can be eligible for a mortgage of up to 95% of the purchase price of the home. As a first time buyer, that means your down payment can be as little as 5% of the house price. With mortgage loan insurance, many Canadians who might not be able to obtain a 25% down payment can still buy a home.

How do I qualify for a low down payment insured mortgage?
To be eligilble for a low down payment insured mortgage, you need to satisfy the following conditions.
The home is located in Canada and is to be occupied as your principle residence.

You have, from your own resources, a down payment of at least 5% of the purchase price of the home.

Your home related expenses must not exceed 32% of gross household income. This includes payment of principal + interest + property taxes + heat + (if applicable) condo fees.

Your total monthly debt load must not exceed 40% of your gross household income.

You must be able to cover closing costs equivalent to at least 1.5% of the purchase price.

You meet both the insurer’s and your lender’s borrower eligibility requirements regarding income, employment and credit worthiness.

Is buying and renovating a popular option?
Most households undertake some sort of renovation within six months of a home purchase. In fact, buyers of resale homes typically spend 50% more on renovations and repairs than either new homebuyers or homeowners who do not move. The most popular project is a bathroom renovation.

Renovations are the rise. At least one in three homeowners intends to reonvate theis year, according to the latest survey conducted by CMHC. In a recent CMHC study, 37 % of homeowners were planning to take renovations valued at more than $1000 in the next 12 months, with an average expenditure of $9,064.

“What types of home are Canadians buying?”
Existing homes are the most popular among potential. In fact, 70% are thinking of buying an existing home, while the remaining 30% are looking to buy a newly built home.

Single detached homes are th most sought after type of a accomdation. The next most popular homes are town-houses and seme-detached homes, favoured by 19% of homebuyers.

Surprisingly, preference for single detached homes peaks for 25-34 year olds. However, affrodabilty constraints may drive many of these young households into more affordable condominium or townhouse units.