How can you have less than a 20% down payment in Ontario, Canada?

5 Replies

Simply means that a lender isn't going to give you a loan for more than 80% of the price or value of the property (whichever is less)

Doesn't mean that you can't be creative with where the 20% comes from.

If I were a bank I wouldn't want to loan more than 80%. That doesn't mean you need 20

Would you be willing to buy a 3 or 4 unit and live in one? If so that can help.
Otherwise 20% is pretty standard but if you don't have the funds maybe look further away from the gta...

Originally posted by @Cody L. :

Simply means that a lender isn't going to give you a loan for more than 80% of the price or value of the property (whichever is less)

Doesn't mean that you can't be creative with where the 20% comes from.

If I were a bank I wouldn't want to loan more than 80%. That doesn't mean you need 20

Save, in Canada the law is quite specific about prescribing limits on your creativity (particularly for residential properties): your downpayment must come from your own funds/equity or can be gifted to you.  It cannot be borrowed.    Get too creative and you could easily find yourself on the wrong side of mortgage fraud.

Originally posted by @Roy N. :
Originally posted by @Cody L.:

Simply means that a lender isn't going to give you a loan for more than 80% of the price or value of the property (whichever is less)

Doesn't mean that you can't be creative with where the 20% comes from.

If I were a bank I wouldn't want to loan more than 80%. That doesn't mean you need 20

Save, in Canada the law is quite specific about prescribing limits on your creativity (particularly for residential properties): your downpayment must come from your own funds/equity or can be gifted to you.  It cannot be borrowed.    Get too creative and you could easily find yourself on the wrong side of mortgage fraud.

Yeah, I'm sure you're right. I tend to look at everything from a libertarian point of view. The rules surrounding loans should be between the borrower and the bank IMO. If they want to do only 60% LTV. Or are wiling to do 100% LTV, that's not the governments business (again, IMO)

Originally posted by @Cody L. :

Yeah, I'm sure you're right. I tend to look at everything from a libertarian point of view. The rules surrounding loans should be between the borrower and the bank IMO. If they want to do only 60% LTV. Or are wiling to do 100% LTV, that's not the governments business (again, IMO)

Look at things with any lens is fine ... just need to decide if/where you are willing to curb your ideals or if you are flattering in orange.