What is the minimum down payment for a $400,000 home in Alberta purchased with an insured mortgage?
Correct Answer
B) $20,000
For a purchase price of $500,000 or less, the minimum down payment is 5% of the price, so $400,000 × 5% = $20,000. The 10% rate applies only to the portion of a price above $500,000, which does not arise here.
Why This Is the Correct Answer
The price is below $500,000, so the minimum down payment is 5% of the whole price: 0.05 × $400,000 = $20,000.
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