Down payment on rental

[Steven Coppola]

Hey BP!! How much down payment do you need on a rental property if you are living in it in Ontario, Canada. I know in the U.S you can qualify for lower intrest rate and lower down payment. Is it the same in canada?

[Roy N.]

@Steven Coppola

In Canada, to place a conventional mortgage on a residential property (1-4 units) you will need a minimum down payment of 20% (max LTV 80%).

If the property is to be owner occupied, then you may qualify for a high-ratio mortgage which could allow for a downpayment as low as 5% (SFH and duplex) or 10% (triplex or quadruplex). Such a mortgage would need to be insured via CMHC or one of the private insurers - the cost of this insurance would be due at the time of financing (most lenders add it to your principal borrowed).