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Can I still buy with 5% down?

Posted on Sep 27, 2012 in Mortgage Market Updates and News

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There's recently been a lot of confusion on the topic of down payment when buying a home. When the new mortgage rules took place July 9th, 2012, the loan to value a borrower could refinance their home to dropped to 80% from 85%. This however does not effect purchasing a home. When you purchase, as long as you're purchasing an owner occupied property, meaning you plan to live in it, or occupy it as a second home, but not rent it out, you can still purchase with five percent down.

Once you own that home, if you want to refinance it, to take extra money out, or switch to a new lender, you need to have 20% equity in your home. There are some exceptions for switching lenders, but 20% equity in your home is the highest you can refinance now to take money out of your home.

People often ask me, "I'm not a first time home buyer, can I still buy with 5% down?". The answer is yes. While this may not be true across the board, there are exceptions to most rules, typically it's not about if you already own a home, but if you're buying it to live in, or as an investment property.

Investments properties require 20% down payment. As well if you're self employed, you may be looking at a minimum 10% down payment. Although there are of course exceptions to that rule as well.

If you're interested in purchasing a home but confused about down payment or anything else, please feel free to call or email me at 2507300239

-Sharie Marie Francoeur, Mortgage Professional with TMG The Mortgage Group Canada Inc.


I'm looking forward to connecting. Due to being in and out of meetings both for council and business, email is typically the best way to get in touch with me. If you prefer to call, that's fine as well, it just may take me slightly longer to get back to you. Texting is also welcomed.
  • TMG - The Mortgage Group Canada Inc.
    4201 Johnston Road, Port Alberni, BC, V9Y 5R2
  • Cell: 250.731.8735
  • Fax: 1.877.474.5346
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