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Considering a Second Home? What's the Minimum Down Payment Required?

Are you considering buying a second home in Calgary? Perhaps you're considering making a purchase of a house or condominium so your child can have a place to live while they are attending university. Or perhaps, you are providing a home for your parents. Or perhaps, you're considering buying a cottage or cabin on the lake?


The minimum down payment for a second home purchase in Canada is 5%. CMHC allows Canadians to own up to two high ratio insured properties. To be eligible for a second home property purchase with a 5% down payment borrowers must intend to occupy the property either themselves or have it occupied by an immediate family member. No rentals are allowed under this program. Also, you cannot make this purchase in a corporate name.

What types of properties are suitable for the CMHC Second Home Program?

Since some people use this program to purchase recreational properties it’s important to know:

  • The property can be located anywhere in Canada and must be suitable for, and available for, year-round occupancy. 
  • Properties that are constructed for seasonal use, or have seasonal access, are not eligible. 
  • Properties located on an island must have year-round bridge or ferry access.
  • Time-share interests, life leases and properties in rental pools are not eligible.

The maximum purchase price for a second home with a 5% down payment is $1,000,000.00 and the maximum amortization is 25 years.

What sources of down payment are allowed for a second home purchase?

Down payments can either come from you own savings, RRSP withdrawal, or be a gifted mortgage down payment from immediate family member.


Source: CMHC


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