A down payment is the amount of money you put towards the purchase of a home. The lender deducts the down payment from the purchase price of your home. Your mortgage covers the rest of the price. You will need to show proof that you have the resources to fund the down payment such as statements showing cash on deposit, eligibility to participate in the Home Buyers Plan (see Home Buyers Plan), or a verifiable financial gift (this is money you are not expected to pay back). The minimum amount required for a down payment depends on the purchase price of the home and ranges from 5% to 20%. If your down payment is less than 20% of the price of your home, you must qualify and purchase high ratio mortgage default insurance (see High Ratio Insurance).
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