Downpayment requirements for primary home (while owning a rental)

[Jonathan Permetti]

Hi, I am in the process of purchasing my first home. I would like to eventually move into another home and keep the original as a rental property. However, I have heard mixed reviews on how much of a downpayment would be required on the second home (my eventual new primary residence), given that I will own another property as a rental. I was told that 20% down would be required for the home I'd move into because of the increased risk brought by the rental property.

Can anyone provide clarity on this? Ideally, I would not have to put 20% down on a future new primary residence as it would free up cash flow for others investments in the meantime.