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Originally posted by p.hora

I have a house which I plan to sell and slide the mortgage for another property. My question is that will I require any down payment for the new house I wish to purchase? (I wish to down size)

Thank you.

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You can buy a house with out any down payment (if qualified) but your mortgage has to be insured for default. The mortgage default insurance premium would depend on the down payment and the amortization you decide to take. Hence, it does not matter if you are taking a new mortgage or porting your existing mortgage to another property you plan to buy, you would still have to pay some extra default insurance premium.

In your scenario, if your original mortgage was high ratio, then the insurer may let you port the mortgage within its guidelines subject to additional premium. However, if you had a conventional mortgage, then you would have to pay full insurance premium for the new house.

Your present bank (lender) will be in a much better position to let you know about your situation. However, if you still have questions, then you can certainly call me for clarification.