When you buy a house or a condo, there are minimum down payment requirements to consider as you make your financial arrangements. If the purchase price is $500,000 or less, you need a 5% down payment. For properties between $500,000 and $999,999, there is a 5% minimum on the first $500,000 and 10% on the remainder. For properties worth $1 million or more, you need a 20% down payment.
If you are buying a property with the intention to rent it out to tenants, you need a 20% down payment regardless of purchase price.
Borrowers who are self-employed or who have poor credit may require a down payment that’s larger than the minimum.
