The down payment (if required)
Owning your own home can be costly. Most first time homeowners in Canada aren’t able to buy their home outright, mainly because houses are expensive. Generally, buyers make a down payment using money they have saved. This is usually around 5% of the property purchase price. The rest of the money is borrowed through a mortgage from a lender such as the Bank of Canada.
If you can, though, consider making as large a down payment as you can, this will bring down your mortgage payments and help you avoid paying additional costs like mortgage insurance.
If your down payment is equal to or more than 20% of your home’s purchase price, you could meet the requirements necessary for a ‘conventional’ mortgage, which means you don’t need to purchase mortgage insurance.
If you don’t have 20% to put down, you could still get a mortgage, but you will have to take insurance against defaulting on your mortgage.