A MINIMUM DOWN PAYMENT OF 5% IS REQUIRED TO PURCHASE A HOME. ALTHOUGH, IF THE HOME IS OVER $250,000, YOU WILL REQUIRE A 10% MINIMUM DOWN PAYMENT. ALSO, YOU MUST CONFIRM THAT YOU ARE IN POSSESSION OF THE APPLICABLE CLOSING COSTS (FOR EXAMPLE, LEGAL FEES AND DISBURSEMENTS, APPRAISAL FEES AND A SURVEY CERTIFICATE, WHERE APPLICABLE).
REGARDLESS OF THE AMOUNT OF YOUR DOWN PAYMENT, AT LEAST 5% OF IT MUST BE FROM YOUR OWN CASH RESOURCES OR A GIFT FROM A FAMILY MEMBER. IT CANNOT BE BORROWED.
IF A FAMILY MEMBER GIVES YOU A GIFT AND YOU ARE USING IT AS DOWN PAYMENT, THE MONEY MUST BE IN YOUR POSSESSION BEFORE YOU APPLY TO CMHC FOR APPROVAL. IF THE MORTGAGE LOAN INSURANCE IS PROVIDED BY GE CAPITAL (GE), THE GIFT MONEY IS NOT REQUIRED UNTIL THE CLOSING DATE. LENDERS WILL USUALLY ACCEPT A GIFT FROM A FAMILY MEMBER AS AN ACCEPTABLE DOWN PAYMENT AS LONG AS YOU CAN PROVE IN WRITING (AND SIGNED BY THE DONOR) THAT IT IS A TRUE GIFT AND NOT A LOAN.
MORTGAGES WITH LESS THAN 25% DOWN MUST HAVE MORTGAGE LOAN INSURANCE PROVIDED BY EITHER CMHC OR GE CAPITAL.
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