The portion of a home’s purchase price paid by the buyer from their own funds, not borrowed through a mortgage. In Canada, the minimum down payment is: 5% on the first $500,000 of the purchase price, plus 10% on any portion between $500,000 and $999,999. Properties priced at $1,000,000 or more require a minimum 20% down payment and are not eligible for CMHC mortgage insurance. Down payments can come from savings, RRSP withdrawals under the Home Buyers’ Plan, or gifted funds from immediate family.
Synonyms:
down-payment|downpayment