Private Lending

Understanding the Down Payment in Real Estate

The down payment is the initial amount you need to invest when purchasing a property.

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The down payment is the initial amount you need to invest when purchasing a property. It represents your financial stake in the project.

In Quebec, the minimum down payment generally varies depending on the type of property:

• 5% for a primary residence (subject to conditions)
• 10% to 20% for an income property
• higher for certain private financing or investment projects

The higher the down payment, the more favourable the financing terms can be. It also reduces the lender's risk.

A Growth Lever

For real estate investors, the down payment is often used as leverage to access larger projects and accelerate the growth of a real estate portfolio.

At CBA inc, we help investors structure their down payment according to their strategy and goals.