Page 9 - Home Buying Guide
P. 9
What difference does your down payment make?
Ssince your down payment affects your CMHC insurance
premium, it also makes a difference to your monthly mortgage
payment.
For example, for a $500,000 property, a 20% down payment
could save you over $400 a month in your monthly mortgage
payments as compared to a 5% down payment.
To estimate your CMHC insurance cost and monthly mortgage
payment, use an online mortgage calculator.
Example calculations for a $500,000 property.
Down payment 5% 10% 15% 20%
Purchase Price $500,000 $500,000 $500,000 $500,000
Down Payment $25,000 $50,000 $75,000 $100,000
CMHC Premium $19,000 $13,950 $11,900 $0
Total Mortgage $494,000 $463,950 $436,900 $400,000
Monthly Payment* $2,338 $2,196 $2,068 $1,893
*Based on 25 year amortization with a fixed rate of 3.0%
