How does down payments affect your mortgage

Welcome to Homebuyer's School brought to you by Brookfield Residential Hi everyone and welcome to another edition of Homebuyer's School Today I'm joined by Troy Champ, Mortgage Advisor with Mortgage Tree, and today the question we're going to ask is: "How does down payment affect your mortgage payments?" So Troy, how does that work? Well obviously the more money you put down on your house, the lower your mortgage amount is going to be – so the lower your mortgage monthly payments will be

But beyond that, the more money you put as a down payment as a percentage of your purchase price, the lower your insurance premiums are going to be So in Canada if you're buying a house with less than 20% down, you must have the mortgage insured through CMHC, CG, or Genworth Those are the three insurers in Canada They charge a premium which is added into your mortgage, and it's calculated based on the percentage of down payment you have So if you have 5% down payment, they charge you a 4% fee into your mortgage

So if you can get to a 10% down payment that amount drops to 31% And if you get to 20%- It goes to zero Oh, okay Is there anything else you want to add? I think that's it

Perfect, well thank you very much Troy Thank you very much everyone for joining us, and we'll catch you next time That's another edition of Homebuyer's School Tune in next time for more expert tips and tricks, and visit homebuyersschoolca to bring you one step closer to finding your dream home

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