What percentage of the purchase price is typically required as a down payment for a home in Ontario?

In Ontario, the typical minimum requirement for a down payment on a home is 5% of the purchase price. This lower percentage is designed to facilitate home ownership for first-time buyers and those who may not have substantial savings. It allows a larger number of people to enter the housing market, particularly in high-cost areas where saving for a larger down payment could be a barrier to home ownership.

While higher down payment percentages, such as 10% or 20%, can be advantageous by reducing mortgage insurance costs and monthly payments, the standard practice begins at 5% for homes priced up to $500,000. For homes above that price, different down payment thresholds apply, but the 5% figure remains relevant for many buyers in Ontario. Understanding this requirement is essential for mortgage agents as they guide clients through the home purchasing process.