07/30/2026
How can a home that costs $100,000 more require $195,000 MORE for the down payment? 👀
Here’s why.
🏡 $1.45M purchase
The purchase price is under 1.5M so this mortgage can still be insured.
Minimum down payment:
5% of the first $500K = $25,000
10% of the remaining $950K = $95,000
Total minimum down payment: $120,000
🏡 $1.55M purchase
Now you’re into conventional mortgage territory (where this mortgage cannot be insured), and lender specific sliding scales can come into play.
Every lender is different, but one of the more favourable sliding scales available through my lenders allows:
80% financing on the first $1.5M
70% financing on the amount above $1.5M
On a $1.55M purchase, that means:
20% of $1.5M = $300,000
30% of the remaining $50K = $15,000
Total down payment: $315,000
That’s a $195,000 difference in down payment on a property that costs only $100,000 more. 🤯
It’s also a perfect example of why interest rate isn’t the only thing that matters when choosing a mortgage.
If your available down payment is limited, a lender with a slightly higher rate but a more favourable sliding scale could make a lot more sense than choosing the lowest rate but needing significantly more cash upfront.
There are a LOT of moving parts to a mortgage. My job is to compare the options and figure out which one makes the most sense for you. 🏡
Of course, every mortgage is different. Approval and available financing depend on income qualification, credit review, the property being purchased, and lender and insurer guidelines.
Questions about this or anything else? Reach out:)
