Can You Still Buy a Home in Sarnia With 5% Down?

 

If you’re dreaming of homeownership in Sarnia-Lambton but wondering if a 5% down payment is enough, you’re not alone. With rising home prices across Ontario, many buyers are questioning whether this traditional minimum down payment still opens doors. At Blue Coast Realty Brokerage, we work with buyers of all budgets and backgrounds to help them navigate the ever-changing landscape of Canadian home financing. In this blog, we’ll break down whether a 5% down payment is still realistic in 2025, what it buys you in Sarnia, and how to prepare financially.

 

 

Understanding the 5% Down Rule in Canada

 

In Canada, the minimum down payment on a home depends on its purchase price:

 

• 5% on the first $500,000
• 10% on the portion between $500,000 and $999,999
• Homes over $1 million require 20% down

 

This means if you’re buying a home for $450,000, your minimum down payment is just $22,500.

But remember: Homes with less than 20% down require mortgage default insurance, which adds to your total cost.

 

What Can You Buy in Sarnia With 5% Down in 2025?

 

As of mid-2025, the average home price in Sarnia is hovering around $475,000—well below the Ontario average. With 5% down, you could still find:

 

• Detached homes in family-friendly areas like Wiltshire Park or Coronation Park
• Townhomes near schools and parks
• Smaller bungalows or semis in walkable neighbourhoods

 

Compared to Toronto or London, Sarnia offers significantly more buying power for first-time buyers and young families.

 

Getting Mortgage Approval With 5% Down

 

To qualify for a mortgage with only 5% down, lenders will look closely at:

 

• Your credit score (ideally 680+)
• Debt-to-income ratio
• Employment stability and income level

 

Working with a mortgage broker or financial advisor can help you get pre-approved and understand what price range is realistic.

 

Tips to Improve Approval Odds:

 

• Reduce outstanding debts
• Save additional funds for closing costs
• Secure stable, documented income

 

Hidden Costs to Budget For

 

Even with a 5% down payment, buyers should plan for additional expenses:

 

• CMHC mortgage insurance (typically added to your mortgage)
• Land transfer tax (with rebates for first-time buyers)
• Legal fees and home inspections
• Moving costs and potential renovations

 

In Sarnia, these costs are generally lower than in larger urban centres, but they still add up. Budgeting $8,000–$12,000 in closing costs is a safe estimate.

 

Why Sarnia Is Ideal for Entry-Level Buyers

 

Sarnia offers a rare combination in today’s market:

 

• Affordable housing under $500,000
• Low property taxes compared to the GTA
• Slower-paced lifestyle with access to beaches and trails

 

Neighbourhoods like Mitton Village and the North End provide a range of affordable entry-level properties.

 

At Blue Coast Realty, we know the market inside and out and can help you uncover hidden gems that suit your budget and goals.

In conclusion, yes, you can still buy a home in Sarnia with just 5% down—but preparation is key. With thoughtful budgeting, good credit, and guidance from experienced professionals, homeownership is within reach even in 2025. Let Blue Coast Realty Brokerage help you make it happen.