This article is written for a Millennial audience, which represents 9 million Canadians or 25% of the national population. A millennial is someone who is born between 1980 and 1999. Here at CME, we like Millennials. 

If you are looking to get into the real estate market, there is no doubt about it, down payments, closing costs, moving expenses, and basic upgrades need to be considered and understood so that you can avoid nasty surprises! 

The size of your down payment is key and, obviously, the bigger the better. You need a minimum of 5 percent of the purchase price and anything less than 20 percent will require you to pay a hefty CMHC mortgage loan insurance premium, which is frequently added to the mortgage principal and amortized over the life of the mortgage as part of the regular monthly payment.

Your lender will want to know the source of your down payment. Many Millennials will depend on the largesse of their parents to top up their down payment.

The down payment, however, is only part of the upfront cost. You can expect to pay from 1.5-to-4 percent of the purchase price of your home in closing costs. These costs include legal fees, appraisals, property transfer tax, HST (where applicable) on new properties, home and title insurance, mortgage life insurance and prepaid property tax and utility adjustments. These amount to thousands of dollars. 

Don’t forget moving costs and essential upgrades to the property such as draperies or blinds in the bedroom. To work through a list of costs associated with buying your own place, any of our Canadian Mortgage Experts would love to talk with you!


This article was adapted from Top 5 things millennials should know when buying real estate. written by DLC Chief Economist Dr. Sherry Cooper. Go ahead and read the original version by clicking that link! Sometimes Dr. Sherry Cooper uses big words, we added that definition so you didn’t have to Google it, we had no idea what it meant either! 

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