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.
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).