How much down payment do you need?
Your down payment is the cash you put toward a home's purchase price; the mortgage covers the rest. In Canada the minimum isn't a single number — it depends on the price of the home, and crossing certain thresholds changes whether you need mortgage default insurance. Here's how it works as of 2026; confirm current rules with CMHC and your lender.
The minimum down payment by price
Canada's minimum down payment is tiered by purchase price:
- 5% on the first $500,000 of the price.
- 10% on the portion between $500,000 and $1.5 million.
- 20% on the entire price if the home costs $1.5 million or more.
So a $700,000 home needs 5% of $500,000 ($25,000) plus 10% of the next $200,000 ($20,000) = $45,000 minimum.
Keep reading: First-time home buyer programs · Closing costs when buying a home. For the official rules, see CMHC — mortgage loan insurance for consumers.
Mortgage default insurance and the 20% line
If your down payment is less than 20%, you have a 'high-ratio' mortgage and must buy mortgage default insurance (from CMHC, Sagen or Canada Guaranty). The premium is added to your mortgage, so you pay interest on it over time.
This insurance protects the lender, not you — but it's what lets buyers purchase with as little as 5% down. As of the 2024 changes, insured mortgages are available on homes priced up to $1.5 million.
Put down 20% or more and you avoid the insurance premium entirely, which is why many buyers aim for that threshold if they can.
Amortization and what changed
Amortization is how long you take to pay off the mortgage. As of the December 2024 changes, 30-year amortizations are available on insured mortgages for first-time buyers and for buyers of new builds — which lowers the monthly payment but increases total interest paid.
Longer amortization makes payments more affordable month-to-month; shorter amortization saves interest overall. Use a mortgage calculator to see the trade-off for your numbers.
Frequently asked
Is it worth waiting to reach a 20% down payment?
Sometimes. Hitting 20% avoids the insurance premium and lowers your loan, but waiting also risks rising prices and rent paid in the meantime. Run both scenarios rather than assuming one is always better.
Can my down payment be a gift?
Yes, a gifted down payment from an immediate family member is generally allowed for insured mortgages, but lenders require a signed gift letter confirming it doesn't have to be repaid. Confirm with your lender.
Sources
- CMHC — mortgage loan insurance for consumers
- Department of Finance — making mortgages more affordable (2024)
General information for Canadian readers, not individualized financial, tax or investment advice. Figures reflect the date reviewed; confirm current limits and rules with the CRA or a qualified professional before acting.