Here’s the straight-to-the-point guide to minimum down payments in Port Moody (and across B.C.), plus smart ways to build your down payment faster.
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Minimum down payment (Canada-wide rules)
It depends on the purchase price:
- $500,000 or less: 5% of the price. (Canada.ca)
- $500,000 to $1,499,999: 5% of the first $500,000 + 10% of the rest. (Canada.ca)
- $1,500,000 or more: 20% minimum (no default insurance). (Canada.ca)
Since Dec 15, 2024, insured mortgages are allowed on homes up to $1.5M (previously $1.0M), which lowers minimum down payments for homes priced between $1.0M and $1.5M. (Canada.ca)
Quick examples
- $800,000 home → 5% of $500k ($25,000) + 10% of $300k ($30,000) = $55,000 minimum.
- $1,200,000 home → 5% of $500k ($25,000) + 10% of $700k ($70,000) = $95,000 minimum.
- $1,600,000 home → 20% = $320,000 minimum (uninsured).
Where your down payment can come from
Common, lender-friendly sources
- Savings / chequing / TFSA (90-day history typically requested).
- FHSA (First Home Savings Account): contribute up to $8,000/year (lifetime $40,000), tax-deductible in and tax-free out for a qualifying first home. (Canada.ca)
- RRSP Home Buyers’ Plan (HBP): withdraw up to $60,000 per buyer ($120,000 per couple) and repay over 15 years. Funds must usually sit in the RRSP ≥90 days before withdrawal. (Canada.ca)
- Non-repayable gift from an immediate family member (letter required). (Canada Mortgage and Housing Corporation)
- Proceeds of sale of another property.
Tip: Many first-time buyers stack FHSA + HBP to boost their total down payment and tax benefits. (Canada.ca)
Insured vs. insurable vs. uninsured (why rates differ)
- Insured (often <20% down): lowest risk to lenders → often lower rates; available to ≤$1.5M purchases. (Canada.ca)
- Insurable (≥20% down but meets insurer rules): near-insured pricing. (Canada Mortgage and Housing Corporation)
- Uninsured (≥20% down or property/program outside insurer rules): usually higher rates and different features.
BC-specific cash planning notes
- Deposit vs. down payment: your offer deposit (held in trust) is credited toward your total down payment at completion.
- Closing costs: set aside ~1.5%–2.0% of price for legal, appraisal, title insurance, property tax/strata adjustments, and Property Transfer Tax (first-time buyer relief may apply; we’ll confirm current thresholds).
- Strata due diligence matters: insurance deductibles, depreciation reports, and levies can affect approvals—and your cash plan.
Fast FAQ
Can I borrow my down payment?
Policies vary. For insured files, traditional sources (savings, FHSA/HBP, gifts) are preferred; some non-traditional sources are restricted. We’ll align your file with current insurer/lender rules. (Canada Mortgage and Housing Corporation)
Do I need 20% down for a rental?
Most non-owner-occupied 1–4 unit purchases require ≥20% and are uninsured (case-by-case). Ask us for today’s lender policies.
Will a larger down payment always lower my rate?
Often, but not always. Pricing also depends on insurability, term, and lender promos.
What to do next
- Map your minimum & ideal down payment (use FHSA + HBP if eligible). (Canada.ca)
- Hold a rate while you shop (often up to 120 days).
- Get a clean pre-approval with a 90-day proof-of-funds checklist.
