Saving for a down payment can feel like scaling a mountain—particularly in Ontario's competitive housing landscape. Yet, the down payment is a cornerstone of your homebuying journey, influencing everything from your monthly payment to whether you'll need mortgage default insurance.
This insurance is mandatory if your down payment is under 20%. While it adds to your monthly costs, it lets you purchase a home with a smaller initial investment. Recognizing that these premiums can be rolled into your mortgage is crucial to spreading the cost.
The down payment you choose sets the tone for your mortgage obligations. A larger down payment reduces monthly payments and might qualify you for lower interest rates. Conversely, tying up too much capital in your home can leave you short for emergencies or other investments.
We understand that every buyer's situation is different. Our team can help you determine an optimal down payment, factoring in your monthly budget, credit standing, and future plans. We also connect you to relevant government incentives if you qualify.
Do you still have questions about your down payment options? Apply now or contact Lighthouse Lending for personalized guidance. We'll help you strike the perfect balance between short-term affordability and long-term stability.