What Are the Minimum Down Payment Requirements in Canada?

For homes up to $ 500,000, the minimum down payment is 5%. From $ 500,000 to $1.5 million, it’s 5% on the first $ 500,000 and 10% on the remainder. For homes valued at $ 1.5 million or more, the minimum is 20%.

The rules are as follows:

• Up to $500,000: 5% of the purchase price.
• $500,000 to $1.5 million: 5% on the first $500K, plus 10% on the amount above $500K.
• $1.5 million or more: 20% minimum.

What If My Down Payment Is Less Than 20%?

If your down payment is under 20%, you must purchase mortgage default insurance (CMHC insurance).

This insurance protects the lender in case of default. It’s added to your mortgage and paid over time, allowing you to buy with less than 20% down.

Why Put Down More Than the Minimum?

A larger down payment reduces your mortgage, lowers monthly payments, and saves interest long-term.

In high-priced markets like Toronto, where saving is challenging, putting down more can still pay off by strengthening your financing profile and building equity faster.

The Fox Marin Team guides clients through down payment strategies helping balance affordability today with financial security tomorrow.

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