A practical planning brief for a significant property purchase.
Set three numbers before you shop
Write down your purchase range, the cash you intend to contribute and the monthly cost you are comfortable carrying. The gap between those numbers is the start of a financing discussion, not a confirmed borrowing limit. Allow separately for closing costs and liquidity after the purchase.
Document where the funds will come from
Identify whether your contribution comes from savings, investments, a property sale or another source. Ask what evidence and transaction history the lender needs. If money must be moved or an asset sold, discuss the timing with the relevant professional before making a commitment.
Understand the down payment threshold
At a price of $1.5 million or above, the federal minimum down payment is 20%. For example, 20% of a $2.5 million price is $500,000. The lender can require more; closing costs are additional. Do not confuse the minimum with an approved mortgage amount.
Stress-test the decision against your life
List the events that could change your plans: an income change, a business investment, a move, or a property sale. Use that list when comparing repayment flexibility and mortgage terms. Ask which conditions remain before removing a financing condition.
Prepare a liquidity timeline
List when deposits, sale proceeds, investment withdrawals and closing funds become available. Tax consequences and timing may require advice from an accountant or financial professional. A substantial asset balance is not the same as verified income or immediately available cash. Keep ownership and the source of funds documented.
How does this apply to your plans?
No obligation. A personal conversation with Tajwar.
Further reading: FCAC: Down payment thresholds
General information, not a commitment to lend. Mortgage eligibility, costs and terms depend on your circumstances and the lender.