The downpayment

When you get a mortgage loan, you are obligated by law to invest an amount taken from your personal assets. This is called a downpayment.

Downpayment sources

The downpayment can come from:

• liquid assets taken from your savings accounts;
• deposit certificates, savings bonds;
• investment funds or RRSPs.

Other eligible sources include:

• Money you receive as a gift, under certain conditions.
• The value of the land on which you want to build your home, if you are the owner.

Lastly, if you are building your own home with the help of family and friends, your caisse may consider a portion of the value of their labour to reduce the amount required for the downpayment.

How much to invest

Generally, a mortgage requires a minimum downpayment of 20% of the lesser of the following amounts:

• the cost or;
• the market value of the property.

Borrow without a downpayment

You can still borrow even if you don't have the minimum downpayment. To do so, you must insure your mortgage with the Canadian Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada (GFC).

Your downpayment can then be as low as 5% or 10% of the property value. With a downpayment of 10%, you may be eligible for a reduced premium with Genworth Financial Canada (GFC), under certain conditions. This premium is exclusive to Desjardins and available only to Quebec residents.

The insurance premium varies according to the downpayment and must either be paid at the time of purchase or added to the mortgage amount. It varies between 0.5% and 2.90% of the amount of the mortgage, depending on the size of the downpayment. The premium is non-refundable.

To find out more about the conditions that apply to mortgage insurance, see your Desjardins advisor.

	At the caisse	Contact an advisor at a caisse.