Down Payment Options

Pulling the money together for a down payment can be daunting and leave you feeling a bit uncertain, whether you're a first-time home buyer or you're looking to move up. Here are three down payment options that'll help get you into the market faster (and make your life a little easier).

High Ratio Mortgage

If your mortgage will represent more than 80% of the value of your home, you might want a High Ratio Mortgage, protected through partnerships ACU has with Canada Mortgage and Housing Corporation (CMHC) and Genworth Financial Capital. Your down payment can then be as low as 5%; the amount you pay for CMHC or Genworth protection depends on the size of your mortgage and can be built into the mortgage amount.

Conventional Mortgage

If you have 20% or more as a down payment for your home purchase (based on the lesser of either the purchase price or appraised market value), a Conventional Mortgage is the right choice. ACU offers standard Conventional Mortgages for both new and existing homes and you can avoid the cost of underwriting your mortgage through CMHC or Genworth.

Home Buyers' Plan

The Home Buyers' Plan is a federal government program that allows you to borrow money from your registered retirement savings plan (RRSP) to buy your home, as long as you meet certain conditions. With this plan, you can withdraw up to $25,000 ($50,000 per couple) tax free from your RRSP savings and apply it toward a down payment on your home. For more information, see the Canada Revenue Agency's RRSPs and Related Plans page.

 

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