Any buyer putting down less than 20 percent must carry mortgage default insurance through CMHC, Sagen or Canada Guaranty, and Saskatchewan charges provincial sales tax on that insurance premium in cash at closing, a cost first-time buyers often forget to budget for. Putting 20 percent or more down avoids that insurance requirement entirely.
Sources of the down payment matter to a lender too. Savings, a gift from a family member, or a withdrawal through the Home Buyers' Plan or a First Home Savings Account are all acceptable, but a lender will ask for paperwork showing where the money came from.
Joel Dyck connects buyers with a lender early so the real minimum for a specific price point is known before you start touring homes. Get your hand-reviewed valuation from Joel Dyck.