Harpreet’s perspective
Real questions. Real properties. Real numbers.
People often ask: ‘What's the minimum down payment?’ Fair question. But I usually follow it with: ‘How much money do you actually have, and what do you need to keep?’
Applicable minimum down-payment requirements depend on the purchase price and mortgage structure, and insured-mortgage requirements can apply when the down payment is below certain thresholds.
Keep Life After Closing in the Plan
But just because you can put more down doesn't automatically mean you should empty every account. I want to know what happens after closing. Do you have emergency savings? Are renovations coming? Do you need furniture? Are you planning another investment? What other debts do you have?
Look for Balance
Putting more money down can reduce the mortgage and payment. Keeping some capital available can provide flexibility. We're looking for balance.
A House Still Needs a Life Around It
I don't want you getting possession of a beautiful house and then checking your bank account to discover you can afford either a couch or groceries. Let's decide the down payment as part of the whole financial strategy, not simply the smallest mortgage possible.