The Down Payment
A down payment is the amount of money that you put towards a home purchase.
The down payment is deducted from the house purchase by the lender.
The remaining amount due is covered by a mortgage.
A home worth $500,000 or less would require a 5% down payment of the price.
A home worth $999,999 - $500,001 would require a 10% down payment of the price.
A home worth $1,000,000 or higher would require a 20% down payment of the price.
A mortgage lender is a bank entity that provides financing for real estate purchases.
The choice of your lender is important because they influence your interest rates.
A lower interest rate will result in lower housing costs throughout your loan.
A credit score check is required when applying for a mortgage loan.
A low credit score will make mortgage approvals difficult and can result in higher costs.
In Ontario to apply for a mortage a credit score of 660+ is considered good
Debt-to-Income Ratio (DTI)
The debt to income ratio is the percentage of income that is put towards repaying debts.
The lower the DTI the greater chance of you meeting the home buyer requirements.
This is a determination of the banks if you can afford a home purchase.
The closing are the fees paid when closing the deal.
Closing costs can include a credit report and application fees. It can also include tax,
lawyers and inspection fees.
The average closing costs in Ontario is between 2% and 5% of the home price.