Buying a property for low money down in Canada?

[Matt Czaikowski]

I'm new to real estate, and plan on purchasing a rental property within the next year or two with the intent on buying and holding it to earn passive income. A lot of books refer to the US market in terms of buying property, so i`m just wondering if it is possible to buy a property for low money down in Canada? Any input would be greatly appreciated!

[Roy N.]

@Matt Czaikowski

A little search here on BP would yield answers.

The "conventional" downpayment on a residential property (1-4 unit) in Canada is 20% (or more).

High-ratio mortgages are available in Canada for owner occupied residential properties.  These are insured through CMHC or one of the private insurers (Genworth or Canada Guaranty).   For a single-family home or duplex you could have a downpayment as low as 5%.  On a triplex or quadruplex the lowest downpayment possible is 10%.

If you were to go this route, one of the units in the property must be your primary residence.  There will also be an insurance premium of up to 3.85% added to the principal of your mortgage.