Canadian Homebuyer Down Payment Guide
Wondering how much down payment you need to buy a home in Canada? The minimum depends on the purchase price, but being ready to buy also means having enough money for closing and the first months of homeownership.
Explore the 2026 down-payment rules, gifted funds, FHSA and RRSP Home Buyers’ Plan options, mortgage default insurance and what lenders may need to verify your money.
Minimum down-payment rules are not a guarantee of mortgage approval. Property type, income, debts, credit and lender requirements still matter.
For eligible purchases, the minimum is normally 5% of the purchase price.
5% on the first $500,000 and 10% on the amount above $500,000.
The general federal minimum rises to 20% at this purchase price.
Down Payment Planning Tool
Enter a home purchase price to estimate the general Canadian minimum down payment. This is a federal-rule calculation, not an assessment of lender eligibility or mortgage affordability.
The minimum changes at $500,000 and $1.5 million. You may choose to contribute more than the minimum.
5% of the first $500,000 plus 10% of the remaining $250,000.
Before mortgage insurance premiums, interest and closing costs.
Down Payment Fundamentals
The purchase price minus the down payment creates the starting amount to finance, before applicable mortgage-insurance premiums or other adjustments.
The smallest permitted contribution may not be the strongest choice for your budget.
Eligible owner-occupied purchases with less than 20% down generally need mortgage default insurance.
Savings, investments, gifts, eligible registered plans and property-sale proceeds may need different records.
Legal fees, taxes, insurance, moving and repairs can all require money beyond the down payment.
Current Federal Minimums
For eligible purchases, the amount required changes with the purchase price. A lender may still require a larger contribution based on the property and borrower.
A $400,000 property generally requires a minimum $20,000 down payment.
Calculate the down payment in two parts rather than applying one percentage to the entire price.
At this threshold, the general federal minimum is 20%. Higher contributions may be required.
Mortgage insurer eligibility, property use, number of units, down payment source, credit profile and lender policies can change the financing available.
Practical Purchase Examples
These examples use the general federal minimum-down-payment formula. They are not property prices for any particular city, mortgage approvals or recommendations to spend this amount.
On mobile, scroll the table horizontally.
| Home Price | Calculation | Minimum Down Payment | Effective Percentage |
|---|---|---|---|
| $400,000 | 5% × $400,000 | $20,000 | 5% |
| $600,000 | $25,000 + 10% × $100,000 | $35,000 | 5.83% |
| $750,000 | $25,000 + 10% × $250,000 | $50,000 | 6.67% |
| $1,000,000 | $25,000 + 10% × $500,000 | $75,000 | 7.5% |
| $1,250,000 | $25,000 + 10% × $750,000 | $100,000 | 8% |
| $1,500,000 | 20% × $1,500,000 | $300,000 | 20% |
Mortgage Default Insurance
Mortgage default insurance protects the lender if the borrower defaults. It is different from mortgage life insurance and does not make your mortgage payments for you.
An eligible purchase typically requires mortgage default insurance.
The premium depends on the approved mortgage and loan-to-value. It can often be added to the mortgage balance, subject to applicable rules.
Generally avoids borrower-paid high-ratio mortgage default insurance, although a lender may obtain insurance on some lower-risk loans.
A larger down payment usually reduces borrowing and interest costs, but mortgage rates and amortization also matter.
Compare the financial benefit of a larger down payment with the need to retain closing funds and emergency savings.
Acceptable Sources of Funds
Lenders may accept several types of funds, but each source must meet the mortgage product's requirements and be documented properly.
First-Time Buyer Savings Programs
Eligible buyers may be able to use both an FHSA qualifying withdrawal and an RRSP Home Buyers' Plan withdrawal for the same qualifying home. Each program has its own eligibility, timing and tax rules.
The standard first-year FHSA contribution room is $8,000, with a $40,000 lifetime contribution limit, subject to participation and carryforward rules.
The current HBP limit permits an eligible participant to withdraw up to $60,000 from an RRSP, subject to CRA requirements.
Gifted Down Payment
The lender may need to determine whether the gift comes from an acceptable donor, whether repayment is expected and whether the money can be traced.
Different lenders and insurers may have requirements about acceptable family relationships.
The lender may provide an approved form or specific wording.
Where a non-repayable gift is required, a hidden repayment arrangement can create an underwriting problem.
Document the movement of money from the donor to the purchase account as requested.
Ask for the requirements before the financing or closing deadline.
Source-of-Funds Documentation
Lenders may request evidence that funds are available and came from an acceptable source. Prepare a complete, accurate explanation rather than just a screenshot of the final bank balance.
Mortgage Documents ChecklistProvide the requested history, relevant pages and account details using the approved submission process.
Keep records that connect investment balances, withdrawals and the receiving bank account.
Retain reasonable evidence explaining unusual or significant deposits.
Keep signed or official documents alongside proof of receipt.
Do not represent repayable borrowing as savings or a non-repayable gift.
Cash Beyond the Down Payment
CMHC suggests approximately 1.5% to 4% of a property's purchase price as a general closing-cost planning range. Actual expenses vary by province, municipality and transaction.
Conveyancing, mortgage registration and related professional expenses.
Varies by province and sometimes municipality. Certain buyers may qualify for rebates or exemptions.
Adjustments may reimburse prepaid expenses or allocate costs between buyer and seller.
May be necessary for purchase due diligence or lender approval.
Charges and requirements depend on the property, lender and jurisdiction.
Not always classified as closing costs, but still important in the cash you need after possession.
Canadian Local Realities
A buyer in Surrey, Toronto, Calgary or Halifax can face the same general minimum-down-payment formula but different property taxes, transfer charges and transaction expenses. Use local figures before deciding your final savings target.
Account for BC property transfer tax, applicable exemptions, strata fees, legal expenses and condo-related adjustments.
Review transfer taxes, property inspections and additional due diligence for acreages, secondary suites or unusual property types.
Plan for Ontario land transfer tax and, for Toronto properties, applicable municipal land transfer tax. First-time buyer rebates may reduce eligible charges.
Budget for land-title and mortgage-registration fees, legal costs, inspection expenses and property-tax adjustments.
Consider notarial expenses, property transfer duties, municipal adjustments and condominium documentation where relevant.
Check applicable deed-transfer taxes, legal costs and property-specific needs, including wells, septic systems or inspections for rural homes.
Local tax rates, exemptions and rebate eligibility can change. Confirm the actual requirements for the property's municipality and province before making a purchase commitment.
Financial Readiness
Before putting all your savings toward the down payment, consider how much cash you will have after the purchase and whether the monthly payment is sustainable.
Certain mortgage-insurance programs allow eligible non-traditional down payment sources under specific conditions. This does not mean all personal loans or lines of credit are acceptable. Borrowed funds can increase total debt and affect mortgage qualification. Confirm the lender and insurer rules before borrowing.
Before You Make an Offer
Knowing your savings balance is a start. Knowing where the money came from, how much is available and what happens after closing gives you a stronger plan.
Four-Step Down Payment Plan
Use your expected home price and the current Canadian minimum down-payment formula.
Identify savings, investments, qualifying program withdrawals or gifts.
Set money aside for transaction costs and early homeownership needs.
Confirm documents, eligibility and purchase conditions with the lender.
More Homebuying Resources
Down Payment FAQs
Clear answers about purchase-price thresholds, gifted money, registered savings plans and lender verification.
Ready to Plan Your Purchase?
The right amount is more than a minimum percentage. It should fit your purchase price, mortgage qualification, available savings and the financial commitments that follow.
Explore MortgageSaver's application resources or ask about the information relevant to your home purchase.
Educational information only. Minimum down-payment rules, FHSA and HBP requirements, mortgage insurance eligibility and closing costs can change. This content is not legal, tax or individualized mortgage advice, an approval or a commitment to lend. Confirm current requirements with the applicable lender, insurer, CRA and qualified closing professional. For more information, review the site disclaimer and privacy policy.
