Free Canadian Mortgage Tool
Down Payment Calculator Canada — Minimum & CMHC
Canada's minimum down payment is 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million. Homes priced at $1.5 million or more require at least 20% down. Enter a purchase price to see the minimum cash required, loan-to-value, estimated mortgage default insurance, and total mortgage.
Short answer
How much down payment do I need to buy a home in Canada?
The minimum is 5% on the first $500,000 of the purchase price and 10% on the portion above it, up to the price ceiling for insured mortgages; above that ceiling you need 20%. Anything under 20% requires mortgage default insurance, whose premium is added to the mortgage balance rather than paid in cash. Down payment funds must be verifiable — savings, investments, an RRSP withdrawal under the Home Buyers' Plan, or a documented gift from an immediate family member.
Your purchase
93.6% loan-to-value
Minimum down payment
$45,000
Your down payment meets the minimum requirement.
- Your down payment
- $45,000 (6.4%)
- Base mortgage
- $655,000
- Default insurance (4.00%)
- $26,200
- Total mortgage
- $681,200
Results are estimates for general guidance only and do not constitute an offer of credit. Actual figures depend on lender policy, credit history, and verified documentation. Call (604) 780-5173 for exact numbers.
Key takeaways
- The minimum is 5% up to $500,000, then 10% on the portion up to $1.5 million.
- A purchase at $1.5 million or more requires at least 20% down and cannot use insured financing.
- Below 20% down, mortgage default insurance is generally required and its premium is normally added to the mortgage.
- Closing costs are separate: keep roughly 1.5% to 4% of the price available beyond the down payment.
- Lenders normally ask for a 90-day paper trail showing where the down payment came from.
How minimum down payment is calculated in Canada
The rule is tiered rather than a flat percentage. On a $700,000 home, the first $500,000 requires $25,000 and the remaining $200,000 requires $20,000, making the minimum $45,000. That is 6.43% of the price, which is why multiplying every purchase by 5% gives the wrong answer above $500,000.
At $1.5 million and above, the insured-mortgage rules stop applying and the entire purchase requires at least 20% down. Individual lenders can require more for rentals, unusual properties, weaker credit, or income that is difficult to verify.
What mortgage default insurance adds
When the down payment is below 20%, the lender generally requires insurance from CMHC, Sagen, or Canada Guaranty. The premium is based on loan-to-value and typically ranges from 2.8% to 4% of the base mortgage at common down-payment levels.
The premium protects the lender, not the borrower. It is usually added to the mortgage balance, so it increases both the amount borrowed and the interest paid. Provincial sales tax treatment differs; Ontario applies tax to the premium, while Alberta and British Columbia do not.
Cash needed beyond the down payment
The calculator isolates down payment and default insurance. A buyer must also budget for land transfer or property transfer tax, legal fees, title insurance, inspection, appraisal, adjustments and moving costs. Ontario and BC buyers often need more cash than Alberta buyers because Alberta has no land transfer tax.
Keep the closing-cost reserve separate from the down payment. Lenders commonly verify that at least 1.5% of the purchase price remains available for closing, even when the actual bill may be higher.
Acceptable sources and proof of funds
Savings, investments, an FHSA, an RRSP Home Buyers' Plan withdrawal, sale proceeds, and a documented gift from immediate family can all be acceptable. The lender typically reviews 90 days of statements and asks about transfers or large deposits.
Borrowed down payments are available only through some programs. The new loan payment counts in debt-service ratios, so borrowing the down payment can reduce the mortgage amount for which you qualify.
Worked example
Worked example: $700,000 home with minimum down
| First $500,000 at 5% | $25,000 |
|---|---|
| Remaining $200,000 at 10% | $20,000 |
| Minimum down payment | $45,000 |
| Base mortgage | $655,000 |
| Estimated insurance premium at 4% | $26,200 |
| Estimated total mortgage | $681,200 |
The minimum is $45,000, not $35,000. Closing costs must still be funded separately, so the buyer needs more than the minimum down payment available on completion day.
Frequently asked questions
How much down payment do I need for a house in Canada?
You need 5% of the first $500,000, 10% of the portion between $500,000 and $1.5 million, and at least 20% of the full price at $1.5 million or more.
What is the minimum down payment on a $700,000 home?
$45,000: $25,000 on the first $500,000 plus $20,000 on the remaining $200,000.
Can I buy a home with 5% down?
Yes, when the purchase price is $500,000 or less and you qualify for insured financing. Above $500,000, the effective minimum percentage rises because the next tier requires 10%.
How can I avoid CMHC insurance?
Put down at least 20%. Compare the full cost before deciding, because insured mortgages can sometimes receive a lower interest rate.
Can my down payment be gifted?
Most lenders accept a non-repayable gift from immediate family with a signed gift letter and evidence showing the funds deposited into your account.
Are closing costs included in the down payment?
No. Budget closing costs separately. A lender normally expects evidence of at least 1.5% of the purchase price beyond the down payment.
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