In case of property purchase in Québec...read this!

A mortgage, for an average person, is probably the single largest amount of money that person will ever borrow. So it is very important to know how mortgages work, and what you need and want in a mortgage before taking this burden on yourself.

A mortgage is a sum of money lent to you by a lender (bank, credit organizations) and who collects an interest rate from the amount of money they lent you. Usually, you have to pay a part of the cost of the home you intend to buy, and this is the down payment.

A down payment is the amount of money that you pay at the time of purchase toward the price of your home (your mortgage loan covers the rest). You should have a good idea of how much you can put toward the down payment before talking to a potential lender or mortgage broker. The idea is

that the bigger your down payment is, the less is the amount of interest paid in the end.

The minimum down payment for the purchase of a home depends n a number of factors like the type of home, but it is at least 5%of the purchase price of the home for the permanent residents