What is the minimum down payment required for a home purchase of $400,000 in Canada?
Correct Answer
D) $20,000
Homes priced at $500,000 or less need a minimum down payment of 5% of the price. For $400,000 that is 5% × $400,000 = $20,000, the same worked example the Financial Consumer Agency of Canada uses.
Why This Is the Correct Answer
Because $400,000 is at or below $500,000, the whole price is subject to the 5% minimum: 5% × $400,000 = $20,000.
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