Conventional Mortgage: A minimum of 20% of the purchase price is required for your down payment. Down payment can be cash savings, money from investments, equity in other property, a gift from family or a combination of these sources. Keep in mind you will need funds set aside for closing costs. You can apply for a conventional mortgage at any financial institution or mortgage broker.

Insured mortgage: A mortgage with less than 20% to as low as 5% down payment. The two companies that BDCU works with are CMHC and SagenTM (was Genworth). Since it is an insured mortgage through these companies there are strict application guidelines. Your lending specialist will be able to discuss with you the requirements for the application and submit the application for you. There is a premium that is associated with insured mortgages. This premium is paid to the insurance company and can be applied directly to the mortgage so you do not have to pay that cost up front. Your finances will be tested against the current 5 year bench mark rate with the Bank of Canada. You will need to show proof of down payment from the following sources: equity in other property, cash savings, RRSP or other investments, cash gift. Check out CMHC and Sagen^TM for more information.