Buying · Homeowners
Canada sets the minimum down payment by purchase price. Since December 2024, the 5% and 10% tiers reach homes up to $1.5 million. Here is what you need at every price point, and how the deposit fits in.
How much do I need to put down as a home buyer?
In Canada, the minimum down payment is 5% of the purchase price on homes up to $500,000. From $500,000 to $1,499,999, it is 5% on the first $500,000 and 10% on the rest. Homes at $1.5 million and above need 20%. Any down payment under 20% comes with mortgage default insurance, and the premium is typically added to the mortgage.
01 The Minimums
Three tiers cover every home in Canada. Find your price range and you have your number.
Purchase price
Minimum down payment
Example
$500,000 or less
5% of the purchase price
$400,000 home: $20,000
$500,000 to $1,499,999
5% on the first $500,000, plus 10% on the rest
$700,000 home: $45,000
$1.5 million or more
20% of the purchase price
$1,500,000 home: $300,000
The same tiers apply in Alberta, BC, Ontario and every other province.
02 The 2024 Change
Before December 15, 2024, every home priced at $1 million or more needed 20% down. The federal government moved that line to $1.5 million. For buyers between the two, the cash needed up front dropped sharply.
$240,000
Minimum down payment on a $1.2 million home under the old rule
$95,000
Minimum down payment on the same home today
That is $145,000 less to bring to the table on a $1.2 million purchase.
The same update opened 30-year amortizations on insured mortgages to all first-time buyers and to all buyers of new builds. A longer amortization lowers the monthly payment.
03 Mortgage Insurance
A down payment under 20% means the mortgage carries default insurance. Three insurers provide it in Canada: CMHC, Sagen and Canada Guaranty. Your lender arranges it, and it is what makes buying with 5% down possible.
Down payment
Premium on the mortgage amount
5% to 9.99%
4.00%
10% to 14.99%
3.10%
15% to 19.99%
2.80%
20% or more
No insurance required
Take the $700,000 home with the $45,000 minimum down. The mortgage is $655,000. The 4.00% premium is $26,200, and it is typically added to the mortgage.
A larger down payment lowers the premium, the monthly payment and the interest you pay over time. It also strengthens your position with lenders. Weigh those benefits against what you can comfortably put down.
04 Deposit And Down Payment
Buyers often treat these as two separate costs. They are one pool of money paid at two moments.
The deposit
The first payment a buyer makes on an accepted offer, before closing. It secures the deal and shows the seller the buyer is committed and able to complete. A larger deposit strengthens an offer when several buyers compete.
The down payment
The total amount the buyer pays toward the purchase from their own funds, outside the mortgage. The deposit counts toward it.
$50,000
Total down payment
$10,000
Deposit, paid with the offer
$40,000
Balance, paid at closing
The mortgage funds the rest of the purchase price.
The purchase contract sets out what happens to the deposit if a deal does not close. Once conditions are removed, a buyer who walks away puts the deposit at risk.
05 Building It
First-time buyers have two registered accounts built for exactly this job.
First Home Savings Account
Contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free.
Home Buyers' Plan
Withdraw up to $60,000 from your RRSP for a first home, and repay it to the RRSP over 15 years.
Use both
Both programs work for the same purchase. Two people buying together each use their own.
06 Your Next Step
With the minimums in hand, the path is short.
Get your financial picture
Talk to a mortgage broker or lender to see what you can afford.
Match neighbourhoods to your price point
See what homes sell for by neighbourhood in Bōde market data.
Set up your search
Set your criteria, price range and neighbourhoods in Bōde search and get new listings by email. The account is free.
Common Questions
The minimum is 5% of the purchase price on homes up to $500,000. From $500,000 to $1,499,999, it is 5% on the first $500,000 and 10% on the rest. Homes at $1.5 million and above need 20%.
No. Homes priced under $1.5 million can be bought with less than 20% down, with mortgage default insurance on the mortgage. Homes at $1.5 million and above need 20% down.
The premium runs from 2.80% to 4.00% of the mortgage amount, based on the size of the down payment. It is typically added to the mortgage. A down payment of 20% or more needs no insurance.
The deposit is the first payment, made on an accepted offer before closing. The down payment is the total a buyer pays from their own funds, outside the mortgage. The deposit counts toward the down payment. On a $50,000 down payment with a $10,000 deposit, $40,000 is paid at closing.
Yes. First-time buyers can withdraw up to $60,000 from an RRSP under the Home Buyers' Plan and repay it over 15 years. A First Home Savings Account takes contributions of up to $8,000 a year, to a lifetime limit of $40,000, with tax-free qualifying withdrawals. Both work for the same purchase.
This article is educational and is not legal, tax, mortgage, or financial advice. Down payment rules, insurance premiums, and program limits are set by the federal government and mortgage insurers, and they change over time. Figures reflect the rules in effect in October 2026. Confirm your numbers with a mortgage broker or lender, and review your purchase contract with a real estate lawyer. Bōde does not provide legal services.
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