Journalism Finance - v2.0.6
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    Function getMinimumDownPayment

    • Calculates the minimum down payment required for a property purchase in Canada, based on the purchase price.

      The calculation follows the Financial Consumer Agency of Canada (FCAC) rules:

      • For properties $500,000 or less: 5% of the purchase price.
      • For properties between $500,000 and $1.5 million: 5% of the first $500,000, plus 10% of the portion above $500,000.
      • For properties $1.5 million or more: 20% of the total purchase price.

      Parameters

      • purchasePrice: number

        The total price of the property being purchased.

      • options: { decimals?: number } = {}

        Additional calculation options.

        • Optionaldecimals?: number

          The number of decimal places to round the result to. By default, the result is not rounded.

      Returns number

      The minimum down payment amount.

      If purchasePrice is negative or not finite.

      // Minimum down payment for a $400,000 home (5%)
      const downPayment400k = getMinimumDownPayment(400_000);
      console.log(downPayment400k); // 20000

      // Minimum down payment for a $600,000 home (5% of 500k + 10% of 100k)
      const downPayment600k = getMinimumDownPayment(600_000);
      console.log(downPayment600k); // 35000

      // Minimum down payment for a $1,600,000 home (20%)
      const downPayment1600k = getMinimumDownPayment(1_600_000);
      console.log(downPayment1600k); // 320000

      // Round the result to two decimal places
      const downPaymentWithDecimals = getMinimumDownPayment(123.456, { decimals: 2 });
      console.log(downPaymentWithDecimals); // 6.17

      Reference: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html

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