CostThe minimum down payment is 5% on the first $500,000 of the purchase price, 10% on the portion between $500,000 and $1.5 million, and 20% on any portion above $1.5 million — and homes over $1.5 million don't qualify for mortgage insurance at all, so they require 20% down on the entire price.
The three tiers
Canada's minimum down payment isn't a single flat percentage — it's a blended rule based on price:
- 5% on the portion of the price up to $500,000
- 10% on the portion from $500,000 to $1.5 million
- 20% on the entire price for homes at or above $1.5 million
This applies to owner-occupied primary residences. Investment properties have a simpler, stricter rule covered below.
A worked example
$800,000 home
| 5% on first $500,000 | $25,000 |
| 10% on remaining $300,000 | $30,000 |
| Total minimum down payment | $55,000 |
| As a percentage of price | 6.875% |
That blended 6.875% is easy to miss if you assume a flat 5% applies to the whole price — a genuinely common and costly misunderstanding. The mortgage payment calculator applies this tiered rule automatically and will flag if your entered down payment falls short.
The $1.5 million cliff
Once a home's price reaches $1.5 million, the minimum down payment jumps to 20% of the entire purchase price, not just the portion above the threshold — and just as importantly, mortgage default insurance isn't available at all above that price point, insured or not. That means a buyer at $1.49 million needs roughly $148,900 down under the tiered rule, while a buyer at $1.5 million needs a full $300,000 — a steep, deliberate cliff rather than a gradual increase, designed to keep insured lending out of the highest price segment entirely.
Investment properties are different
None of the tiered thresholds above apply to investment (non-owner-occupied) properties. Those always require a flat 20% minimum down payment regardless of price, since mortgage default insurance was designed for owner-occupiers and isn't available for rental purchases at any price point. See our guide to evaluating a rental property if you're weighing that math.
Check your exact minimum for any price and property type with the mortgage payment calculator, or see your overall affordability first.