In Canada the minimum down payment is 5% on the first $500,000 of the price and 10% on the portion above $500,000, for homes up to a $1.5 million price where insured mortgages are available. Put 20% down to skip mortgage default insurance. Estimate your payment on our mortgage calculators and watch the live rate.
The minimum is 5% on the first $500,000 and 10% on the portion above, up to a $1.5M purchase price. A 20% or larger down payment means an uninsured mortgage with no CMHC premium. A smaller down payment means a larger loan, a premium, and higher payments. This is not financial advice.
Canada's minimum down payment is tiered by price. On homes priced at $500,000 or less, you need at least 5% down. On homes priced between $500,000 and $1.5 million, you need 5% on the first $500,000 and 10% on the amount above it. As of December 2024, insured (default-insured) mortgages are available up to a $1.5 million purchase price. For homes priced above $1.5 million, no default insurance is available, so you must put down at least 20%.
Work it out in two layers. Take 5% of the first $500,000, then add 10% of anything above $500,000. Here are a few illustrative examples:
| Purchase price | Minimum down payment | How it breaks down |
|---|---|---|
| $450,000 | $22,500 | 5% of $450,000 |
| $700,000 | $45,000 | 5% of $500,000 + 10% of $200,000 |
| $1,200,000 | $95,000 | 5% of $500,000 + 10% of $700,000 |
| $1,700,000 | $340,000 | 20% required (no insurance available) |
These figures are illustrative and do not include closing costs. A first-time buyer should also budget for land transfer tax, legal fees and other costs.
Reaching 20% down makes your mortgage uninsured: you avoid CMHC (or Sagen/Canada Guaranty) mortgage default insurance and its premium. That lowers your total loan and monthly payment, and it can give you more flexibility on the property type and price. You still have to clear the mortgage stress test at a federally regulated lender — qualifying at the higher of your contract rate plus 2% or 5.25% — and your amortization can be longer on uninsured loans, up to 30 years or more with some lenders.
With less than 20% down, mortgage default insurance is mandatory. The premium is a percentage of your loan that rises as your down payment falls — broadly from around 2.8% of the mortgage at 5% down to about 2.4% at 15% down. The premium is usually added to your mortgage balance and paid off over the amortization, so a smaller down payment means a bigger loan, a premium on top, and higher monthly payments. A larger down payment cuts the loan, may remove the premium entirely at 20%, and reduces interest over the life of the mortgage. Test different down payment sizes in our calculators, and keep an eye on the next rate decision on July 15, 2026 and prime rate if you are choosing between fixed and variable.
The minimum is 5% on the first $500,000 of the purchase price and 10% on the portion above $500,000, for homes priced up to $1.5 million where insured mortgages are available. Above $1.5 million you need at least 20% down.
On a $700,000 home the minimum is 5% of the first $500,000 ($25,000) plus 10% of the remaining $200,000 ($20,000), for a total minimum of $45,000. This is an illustrative calculation, not financial advice.
Put down 20% or more of the purchase price. With at least 20% down your mortgage is uninsured and you do not pay a default insurance premium, though you still must pass the stress test at a federally regulated lender.
The premium is a percentage of your mortgage that rises as your down payment shrinks, typically ranging from around 2.8% at 5% down to about 2.4% at 15% down. It is usually added to your mortgage and paid off over time, so a smaller down payment means a larger loan and higher payments.
Yes. First-time buyers can withdraw up to $60,000 each from an RRSP under the Home Buyers' Plan and repay it over 15 years, and a First Home Savings Account can also be used tax-free toward a first home.