Buying a home can be a complex financial journey. If you plan to get a mortgage, you’ll hear about the need for a down payment, but your REALTOR^® will also mention a deposit.

Local housing industry experts say a change that governs the amount buyers are required to put down when purchasing a home will significantly impact Calgary's already sluggish market.

Effective Feb. 15, 2016, the change announced by the federal government in early December will raise the minimum down payment for new insured mortgages from five to 10 per cent on the portion of the house price above $500,000.

"The intent of [the change] is to pull back demand, and they're slowing demand in a market where we're already seeing demand slow," said CREB® chief economist Ann-Marie Lurie, noting resale residential sales in Calgary have already dropped nearly 20 per cent from the 10-year average.

Plenty of options available to buyers
When buying a home, the first thing to consider is the down payment.

Most people know they need at least five per cent of the purchase price as a minimum  requirement, and 20 per cent to avoid Canadian Mortgage and Housing Corp. (CMHC) mortgage insurance. However, many people do not realize there are more places to come up with a down payment than just your savings. Here are a few of the most common:

Savings
The first and most common source of a down payment is a person or a couple's savings. First you save, then you buy the house – pretty straightforward.