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A wide majority of first-time buyers-to-be plan to put down less than 20%, according to new data  from RBC/Ipsos.

Here’s the breakdown of their expected down payments:

  • 10% or less (62% of respondents)
  • 11-20% (26% of respondents)
  • More than 20% (12% of respondents)

Over half of newbie homeowners will likely pay the maximum default insurance premium to buy their home.* That maximum ranges from $2,750-$2,900 per $100,000 of purchase price (i.e., 2.75%-2.90%), depending on the source of down payment.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2013/05/first-time-down-payments.html#more

Survey details:  These findings come from an RBC / Ipsos Reid poll conducted between January 31st and February 8th, 2013 on behalf of RBC. The sample was 3,005 Canadian adults from Ipsos’ Canadian online panel.

* This is the maximum default insurance premium for fully qualifying borrowers (i.e., those who can prove their income).

http://www.ipsos-na.com/news-polls/pressrelease.aspx?id=6093