Minimum Down Payment in Canada (2026 Rules by Price, With Examples)
The minimum down payment is 5% up to $500,000, 10% on the portion up to $1.5 million, and 20% beyond. What that means at $750K, $1M and $1.49M.
5% of the first $500,000, plus 10% of any amount between $500,000 and $1.5 million. At $1.5 million or more the minimum is 20% of the whole price. So the minimum on a $750,000 home is $50,000 (6.7%), on a $1 million home $75,000 (7.5%), and on a $1.5 million home $300,000. Anything under 20% down requires mortgage default insurance.
Figures come from the CostToClose minimum down payment calculator, which applies the federal rules in force since 15 December 2024.
The rule in one table
| Purchase price | Minimum down payment | Effective % |
|---|---|---|
| $400,000 | $20,000 | 5.0% |
| $500,000 | $25,000 | 5.0% |
| $750,000 | $50,000 | 6.7% |
| $1,000,000 | $75,000 | 7.5% |
| $1,499,999 | $125,000 | 8.3% |
| $1,500,000 | $300,000 | 20.0% |
Source: Financial Consumer Agency of Canada; Department of Finance Canada (insured mortgage cap raised to $1.5 million, 15 December 2024). Computed with the CostToClose calculator.
The last two rows are the point most buyers miss. One dollar of price at $1.5 million adds $175,000 to the minimum down payment, because the home is no longer eligible for insurance and lenders require 20% on uninsured mortgages.
Why 20% matters
Below 20% down the mortgage must be insured against default by CMHC, Sagen or Canada Guaranty. The premium is 4.00% of the loan at 5% to 9.99% down, 3.10% at 10% to 14.99%, and 2.80% at 15% to 19.99%. It is added to the mortgage, but in Ontario, Quebec, Saskatchewan and Manitoba the provincial sales tax on the premium is due in cash on closing.
At 20% down there is no insurance, no PST, and usually a slightly higher interest rate, because insured mortgages are cheaper for lenders to fund. See CMHC insurance explained.
Where the down payment can come from
Lenders accept savings, investments, gifts from immediate family (with a signed gift letter), proceeds from a sale, the RRSP Home Buyers' Plan (up to $60,000 per person) and the FHSA (up to $40,000 lifetime plus growth). Borrowed money is accepted by some lenders for the portion above 5%, with the payment counted in your debt ratios.
Insurers also require you to show closing costs of at least 1.5% of the price in addition to the down payment. A $700,000 purchase with the minimum $45,000 down therefore needs roughly $55,500 in verified funds before the lender will approve it.
Worked example from the calculator
Buyer looking at a $920,000 house in Ottawa:
| Item | Amount |
|---|---|
| 5% of the first $500,000 | $25,000 |
| 10% of the remaining $420,000 | $42,000 |
| Minimum down payment | $67,000 (7.3%) |
| Mortgage before insurance | $853,000 |
| CMHC premium (4.00%, because down payment is under 10%) | $34,120, added to the mortgage |
| Ontario PST on the premium (8%) | $2,730 cash on closing |
| Required proof of closing costs (1.5%) | $13,800 |
Putting down $92,000 (10%) instead would drop the premium rate to 3.10%, saving $8,452 in premium and $677 in PST. Reproduce this.
What changes the number
- Price at or above $1.5 million: 20% minimum, no insurance possible.
- Non-owner-occupied rental: 20% minimum regardless of price.
- Self-employed or new to Canada: the rules are the same, but insurers may require more documentation or, for some newcomer programs, a 10% minimum.
- Amortization over 25 years: available on insured mortgages only to first-time buyers or buyers of new construction, and it adds 0.20% to the premium.
Who this covers
This is the federal minimum for a standard owner-occupied resale or new-build purchase. Non-owner-occupied rental property needs 20% down regardless of price, and some lenders apply a higher minimum of their own for rural, unique, or leasehold properties. The federal rule is a floor, not a guarantee every lender will offer it.
What this doesn't include
- The documentation a lender actually requires to verify your funds (gift letters, 90-day account history, HBP or FHSA withdrawal paperwork), which varies by lender and can take weeks to assemble.
- Newcomer-to-Canada program specifics. Some lenders offer different minimums for recent immigrants; this page uses the standard federal rule only.
- How a borrowed portion of the down payment (where a lender allows it above 5%) factors into your debt-service ratios for qualifying purposes.
- A specific lender's own minimum-down overlay for property types outside a standard resale or new-build home.
- The repayment mechanics of the Home Buyers' Plan or FHSA once you've used them. See FHSA vs RRSP HBP for that separately.
Questions worth asking a professional
- If part of your down payment is a gift, ask your lender exactly what documentation they need and by what date before closing.
- If you're self-employed or new to Canada, ask whether your lender requires a higher minimum down payment or extra income documentation.
- Ask whether your specific property type (rural, unique, or leasehold) has a different minimum at your lender.
- If you're using the Home Buyers' Plan or FHSA for part of the down payment, ask about the repayment or contribution rules before committing the funds.
Frequently asked questions
What is the minimum down payment on a $600,000 house in Canada?
$35,000: 5% of $500,000 plus 10% of $100,000. That is 5.8% of the price, and the mortgage will need default insurance.
Can you buy a house in Canada with 5% down?
Only up to $500,000. Above that the minimum rises gradually because the portion over $500,000 needs 10%.
Is the minimum down payment 20% for a $1.5 million home?
Yes. Homes priced at $1.5 million or more cannot be insured, and lenders require 20% down on uninsured mortgages.
Does the minimum down payment include closing costs?
No. Closing costs are separate and must also be paid in cash. Insurers require proof of at least 1.5% of the price for closing costs on top of the down payment.
Can the down payment be a gift?
Yes, from an immediate family member, with a gift letter stating it is not a loan. Some lenders require the gift to be in your account before closing.
Sources
- Financial Consumer Agency of Canada, Making a down payment on a home — checked 14 Sept 2026
- Department of Finance Canada, mortgage rule changes effective 15 December 2024 (insured cap $1.5 million; 30-year insured amortizations) — checked 14 Sept 2026
- CMHC, Mortgage loan insurance premiums — checked 14 Sept 2026
This guide gives general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.