How much down payment do you need in Canada?
The minimum down payment depends on the home's purchase price. For a home priced at $500,000 or less, the simplified minimum is 5%. From $500,000 to below $1.5 million, it is 5% of the first $500,000 plus 10% of the amount above $500,000. At $1.5 million or more, at least 20% is required for this planning model.
A down payment is not the complete cash requirement. Legal fees, land transfer tax, inspections, moving expenses and money retained for emergencies can materially increase the amount needed before closing.
Mortgage default insurance and your down payment
When the down payment is below 20%, mortgage default insurance will generally be required for an eligible insured purchase. It protects the lender rather than the homebuyer. The premium can often be added to the mortgage, which means the financed balance may be higher than the purchase price minus the down payment.
The calculator estimates standard premium bands for planning. Exact premiums, surcharges, provincial tax and eligibility must be confirmed with the lender and insurer. See the CMHC mortgage loan insurance explanation.
First Home Savings Account
An eligible FHSA holder may make a qualifying tax-free withdrawal toward a qualifying home. Enter only funds expected to be available at closing and verify all withdrawal conditions.
Home Buyers' Plan
The federal Home Buyers' Plan currently permits an eligible person to withdraw up to $60,000 from RRSPs, subject to its conditions and repayment rules.
Gifts and other sources
A lender must verify the source and acceptability of down-payment funds. Enter gifts only when they are expected to meet the mortgage provider's documentation and relationship rules.
Minimum down payment versus cash needed to buy
The minimum down payment only addresses the equity portion of the purchase. This calculator adds buyer-entered transaction costs and an emergency reserve, then subtracts eligible funding sources to produce a more complete personal savings goal. Land transfer taxes and rebates vary significantly by province, municipality and buyer status, so they remain editable rather than being treated as one national amount.
After comparing down payments, use the Canada mortgage calculator to estimate payments and total interest.
Canada down payment questions
Do Canadian homebuyers always need 20% down?
No. Eligible insured purchases below $1.5 million may use a smaller down payment. A down payment below 20% generally requires mortgage default insurance.
What is the minimum down payment on a $650,000 home?
Using the tiered federal calculation, it is 5% of the first $500,000 plus 10% of the remaining $150,000, or $40,000.
Is mortgage insurance part of the down payment?
No. The premium is separate. It may be paid upfront or added to the mortgage, subject to the lender and insurer.
Can FHSA and Home Buyers' Plan funds be used together?
They may both be used for the same qualifying home when all conditions for each program are met. Confirm eligibility and timing before relying on the funds.
Does this calculator include land transfer tax?
It includes the amount you enter. Provincial and municipal taxes, first-time-buyer rebates and eligibility differ, so the calculator does not impose one automatic national estimate.