How Much Down Payment Do You Need in Canada?
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How much down payment you need depends on one number: the purchase price. As of October 18, 2026, the minimum is 5% on the first $500,000 and 10% on the portion between $500,000 and $1.5 million. At $1.5 million or more, you need a full 20%.
This guide explains the rule step by step, shows the minimum down payment at seven prices, and compares what a bigger down payment saves on mortgage insurance. To run your own price, use our down payment calculator. For rates and lenders, see our mortgages hub.
The minimum down payment rules
The Financial Consumer Agency of Canada (FCAC) publishes the minimum down payment by purchase price. As of October 18, 2026, the rule has three tiers, shown in the table below.
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $1,499,999 | 5% of the first $500,000, plus 10% of the portion above $500,000 |
| $1.5 million or more | 20% of the purchase price |
These are minimums for a home you will live in. Your lender can ask for more. According to the FCAC, a lender may require a larger down payment if you are self-employed or have a poor credit history.
How the 10% tier works
The 10% tier applies only to the part of the price above $500,000, not to the whole price. That is why the down payment rises gradually instead of jumping at $500,001.
Take a $650,000 home. The calculation has two steps:
- First $500,000 at 5%: $25,000
- Remaining $150,000 at 10%: $15,000
- Minimum down payment: $40,000, or about 6.15% of the price
The same logic applies up to $1,499,999. Above that, the tiers disappear: a home priced at $1.5 million or more needs 20% of the full price, because mortgage insurance is not available at that price.
Minimum down payment by price
The table below applies the rules to seven prices. Percentages are rounded to two decimals.
| Purchase price | Minimum down payment | Share of price | Mortgage insurance |
|---|---|---|---|
| $400,000 | $20,000 | 5.00% | Required |
| $500,000 | $25,000 | 5.00% | Required |
| $650,000 | $40,000 | 6.15% | Required |
| $900,000 | $65,000 | 7.22% | Required |
| $1,200,000 | $95,000 | 7.92% | Required |
| $1,499,000 | $124,900 | 8.33% | Required |
| $1,500,000 | $300,000 | 20.00% | Not available |
The jump between $1,499,000 and $1,500,000 is the biggest trap in the rules. One extra dollar of price moves the minimum from about $124,900 to $300,000. If you shop near that line, confirm the final price with your lender before you sign.
Down payment and mortgage insurance
Any down payment under 20% means an insured mortgage. The insurer charges a one-time premium, calculated as a percentage of the loan, and it usually gets added to your mortgage. The smaller your down payment, the higher the percentage.
The table below compares four down payments on the same $650,000 home, using CMHC's premiums for a 25-year amortization as of October 18, 2026. At the minimum of $40,000, the premium is $24,400. At 20% down, there is no premium at all.
| Down payment | Mortgage amount | Loan-to-value | Premium rate | Premium |
|---|---|---|---|---|
| $40,000 (minimum, 6.15%) | $610,000 | 93.85% | 4.00% | $24,400 |
| $65,000 (10%) | $585,000 | 90.00% | 3.10% | $18,135 |
| $97,500 (15%) | $552,500 | 85.00% | 2.80% | $15,470 |
| $130,000 (20%) | $520,000 | 80.00% | Not required | $0 |
Going from the minimum to 10% down cuts the premium by $6,265, and 15% down cuts it by $8,930. Those savings come on top of the interest you avoid by borrowing less. Our CMHC insurance calculator shows the premium for your own price and down payment.
A 30-year amortization costs more
If you qualify for a 30-year amortization as a first-time buyer or a buyer of a newly built home, CMHC charges a higher premium. On the same $650,000 home, the premium at the minimum down payment rises from $24,400 to $25,620. Our guide to mortgage insurance in Canada covers the other differences.
Where your down payment can come from
CMHC accepts a traditional down payment from savings, the sale of a property, or a non-repayable gift from a relative. Lenders will ask you to prove where the money came from, usually with recent bank statements and a signed gift letter for any gift.
Two federal programs help you build it faster:
- First Home Savings Account (FHSA): up to $8,000 a year and $40,000 for life, tax-deductible going in and tax-free coming out for a first home
- Home Buyers' Plan (HBP): up to $60,000 per person from your RRSP, repaid over 15 years
To see how each one works, use our FHSA calculator and our RRSP guide. Keep the money you are saving in a high-interest account in the meantime; our list of the best savings accounts compares current options.
Borrowed down payments
CMHC also accepts a non-traditional down payment, such as an unsecured personal loan or line of credit, in limited cases. It must be at arm's length from the purchase, it applies only to 1 or 2 unit homes with a loan-to-value ratio between 90.01% and 95%, and it requires a strong credit history. The premium rises from 4.00% to 4.50% of the loan. A borrowed down payment also adds a monthly payment that counts against you in the mortgage stress test.
Rental properties and second homes
The 5% minimum applies to a home you, or a close relative living rent-free, will occupy. For a 2 to 4 unit rental property you will not live in, CMHC's small rental program caps the loan at 80% of the value, so you need at least 20% down. If you live in one unit of a 2 to 4 unit building, homeowner rules apply, with a minimum of 10% down for 3 or 4 units.
Budget for closing costs too
Your down payment is not the only cash you need on closing day. Expect land transfer tax in most provinces, legal fees, a home inspection, and adjustments for property tax already paid by the seller. In Ontario, Quebec, and Saskatchewan, provincial sales tax on the mortgage insurance premium is also due at closing and cannot be added to the loan.
Our land transfer tax calculator estimates the biggest of these costs for your province.
Conclusion
The minimum down payment in Canada is 5% up to $500,000, plus 10% on the part of the price up to $1.5 million, and 20% at $1.5 million or more. On a $650,000 home, that means $40,000 at minimum, but each extra 5% you put down cuts thousands from the mortgage insurance premium.
Run your own price in our down payment calculator, then check what the lender will approve with a mortgage pre-approval.
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Frequently asked questions about down payments
What is the minimum down payment in Canada?
As of October 18, 2026, you need 5% of the first $500,000 of the purchase price. For a home priced up to $1.5 million, you add 10% of the portion above $500,000. A home at $1.5 million or more needs 20% of the full price. Our down payment calculator applies these tiers to any price.
How much do I need to put down on a $600,000 house?
You need $25,000 on the first $500,000 and $10,000 on the remaining $100,000, for a minimum of $35,000. That is about 5.83% of the price. With less than 20% down, you will also pay a mortgage insurance premium, which our CMHC insurance calculator estimates for you.
Can I buy a house with less than 5% down?
Not with an insured mortgage from a regulated lender: 5% of the first $500,000 is the floor. You can, however, build that 5% faster with an FHSA and the Home Buyers' Plan, and CMHC accepts a non-repayable gift from a relative. Our FHSA calculator shows how quickly the account grows.
Is it better to put 20% down?
At 20% or more, you avoid the mortgage insurance premium, which reached $24,400 at the minimum down payment in our $650,000 example. You also borrow less, so you pay less interest. Putting everything into the down payment, however, can leave you without an emergency fund. Our emergency fund calculator helps you size that cushion first.
Can my down payment be a gift?
Yes. CMHC accepts a non-repayable financial gift from a relative as a traditional down payment. Your lender will usually ask for a signed gift letter confirming that the money does not have to be repaid, and for proof the funds are in your account. See our mortgage pre-approval guide for the documents lenders request.
How much down payment do I need for a rental property?
For a 2 to 4 unit property you will not live in, CMHC's small rental loans go up to 80% of the value, so you need at least 20% down. If you live in one of the units, homeowner rules apply: 5% of the first $500,000 and 10% of the rest for 1 or 2 units, and 10% for 3 or 4 units. Compare financing options in our guide to mortgage brokers vs banks.
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