What is the difference between purchase price, downpayment and mortgage amount borrowed?
The purchase price is the agreed upon value to be paid by the buyer to the seller. The downpayment is your total available savings being put towards the purchase of the home. It is the difference between the purchase price and the amount of money being borrowed. If your downpayment is less than 25% of the purchase price the CMHC insurance fee will be included in your mortgage amount borrowed.
