The thing that is on all prospective home buyers' minds before they start getting a mortgage is the down payment required to begin the process. According to Canadian regulations, you can not simply get a mortgage with no down payment amount towards the purchase price of the home.

This means you will need to save up at least some level of down payment before you are able to purchase real estate. Just how much you decide to, or are able to, save will depend on your own situation and the loan in question.

A down payment should not be confused with a deposit. In terms of buying a home, a deposit is an amount of money that you have to provide to the seller along with your offer to buy a property. The purpose of this deposit is to prove that you are serious about buying and that you have the money to handle the related closing fees. Upon the sale of the home, you can put the deposit towards your down payment or towards the closing fees. Deposits are typically much smaller than down payments.

Your down payment is essentially the amount of the purchase price that you pay upfront. This means while it is not returned, it does get converted into an ownership stake in the property and its equity. Your down payment is important for your lender as they will have down payment requirements that determine your mortgage eligibility and rates.

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