Downpayment Tips!

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How Much Should I Expect To Save Up?

Start by understanding the average price of homes in your area. The average home price in Canada in August 2021 was $663,500, according to data from the Canadian Real State Association:

  • $33,175 for a 5% down payment
  • $132,700 for a 20% down payment

How is a Down Payment Calculated?

When you’re buying a home, the down payment is calculated as a percentage of the total purchase price. The higher the price, the higher the down payment.


When you use gift funds, your lender may require you to provide a gift letter. A gift letter for a down payment is a written statement explaining who is gifting the money, where the funds are coming from, and what the relationship is between the donor and recipient.

A gift letter must include the following:

  • Donor’s name and contact information
  • Disclosure of the relationship between donor and recipient
  • The exact dollar amount of the gift
  • Address of the property being purchased
  • Date of the gift money transfer
  • Donor’s bank, account number, and type of account
  • A statement from the donor saying repayment isn’t expected
  • Signatures of both the donor and recipient 

If you need to provide additional information with your gift letter, your lender will let you know what you need.

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