The down payment is deducted from the purchase price of your home. Your mortgage loan will cover the rest of the price of the home. The minimum amount you'll need for your down payment depends on the purchase price of the home you'd like to buy.
Purchase price of your home
- $500,000 or less
- $500,000 to $999,999
- $1 million or more
Minimum amount of down payment
5% of the purchase price
5% of the first $500,000 of the purchase price
10% for the portion of the purchase price above $500,000
20% of the purchase price
If you're self-employed or have a poor credit history, you may be required to provide a larger down payment.
Normally, the minimum down payment must come from your own funds. It's better to save for a down payment and minimize your debts.