A conventional mortgage loan
When purchasing a home all financial institutions request 20% as a down deposit. This is considered a conventional mortgage loan. If your deposit is less than 20% you will require to purchase a mortgage insurance (CMHC) Canada's mortgage and housing corporation. The amount varies depending on the down deposit the greater the deposit the lesser the risk so the rate will be lower.
Please refer to the examples below:
Rate for owner occupied
Down payment |
Premium Rate |
Top-up Rate |
0% (posted rate + cash back) |
2.90% |
4.25% |
5% |
2.75% |
4.25% |
10% |
2.00% |
4.25% |
15% |
1.75% |
3.50% |
20% and more (not within norms) |
1.00% |
2.75% |
20 % and more (conventional) |
0 % |
0% |
20% premium surcharge will be applied for an additional 5 years of amortization beyond the traditional 25 years
Rate for owner non-occupied
Down payment |
Rate |
20 % (Conventional) 1 to 4 units |
0% |
25 % (Conventional) 5 units and more |
0 % |
These examples are all based on an amortization of 25 years
For every additional 5 years please add .20%
Minimum down payment for owner occupied
Type of property |
Down payment |
Single familial |
0 % |
Duplex |
0% |
Triplex |
10 % |
Fourplex |
10 % |
Fiveplex and more |
15 % |
Minimum down payment for owner non-occupied
Type of property |
Down payment |
Single familial |
20 % |
Duplex |
20 % |
Triplex |
20 % |
Fourplex |
20 % |
Fiveplex and more |
25 % |
*Subject to change without prior notice* |
