5% downpayment - Any difficulties?

Depending on your purchase price and loan value, the monthly amount for the loan would likely be quite high, considering the CMHC fees and only getting a 25yr amortization vs a 30yr amortization and no CMHC fee with a 20% down payment.

Have you spoken to a mortgage broker for your options and comparison in rates as well as which lenders would be willing to work with you based on your purchase price etc? You may want to at least do a free consult with one.

Good luck!

badmus wrote: ↑ With strong established income and relatively low debt (easily meet all TDS and GDS requirements), are there any current issues putting down 5% for a mortgage? apart from the stress test rate required since it is under 20% downpayment and that some lenders like credit unions like bigger downpayments in the 10 to 15% range.

Is 5% for a new mortgage relatively doable still today?

All “A” lenders are ok with 5% down.

Keep in mind, it’s min. 5% for the first $500k and 10% down on increments above that.

Also, it’s min. 20% down for properties over $1M.

badmus wrote: ↑ With strong established income and relatively low debt (easily meet all TDS and GDS requirements), are there any current issues putting down 5% for a mortgage? apart from the stress test rate required since it is under 20% downpayment and that some lenders like credit unions like bigger downpayments in the 10 to 15% range.

Is 5% for a new mortgage relatively doable still today?

Remember that a down payment anywhere from 5-9.9%, CMHC will charge you 4% of the total purchase price of the home and roll it into your mortgage.

Slono wrote: ↑ Remember that a down payment anywhere from 5-9.9%, CMHC will charge you 4% of the total purchase price of the home and roll it into your mortgage.

You do get lower mortgage rates for the life of the mortgage though. Not to mention being able to buy sooner which avoids rent expense.

sircheersa wrote: ↑ You do get lower mortgage rates for the life of the mortgage though. Not to mention being able to buy sooner which avoids rent expense.

Only the OP would know if the numbers work. Mortgage numbers will look dramatically different with 20% down vs. a CMHC insured 5% down.

The lender will also most likely ask for every document under the sun pertaining to your income and assets to prove you can “support” the mortgage.

sircheersa wrote: ↑ You do get lower mortgage rates for the life of the mortgage though. Not to mention being able to buy sooner which avoids rent expense.

Using CMHC insurance is generally more expensive, considering all factors involved and discounted rates.

How about for people who have already got CMHC on their mortgage? Any LPT on how to use that to their advantage moving forward?