How Much Down Payment Do You Need on a House in Canada?
How much down payment do you need on a house in Canada?
The minimum down payment on a house in Canada is 5% on the first $500,000 of the purchase price. Under 2026 CMHC rules, homes priced from $500,000 up to below $1,500,000 require 5% on the first $500,000 plus 10% on the remainder. Homes at $1,500,000 or above require 20% and are not eligible for CMHC insurance. Use the down payment calculator to see your exact amount.
Key Takeaways
- The minimum down payment in Canada is 5% on homes priced under $500,000 under 2026 CMHC rules.
- Homes priced from $500,000 up to below $1,500,000 use a blended rate: 5% on the first $500K plus 10% on the remainder.
- At $1,500,000 or above, you need 20% down — CMHC insurance is not available.
- CMHC rules changed on December 15, 2024: insurance expanded to homes priced under $1,500,000, and 30-year amortization became available for qualifying first-time buyers on insured mortgages.
- First-time buyers can use the RRSP Home Buyers' Plan (up to $60,000 per person, raised from $35,000 in Budget 2024) and FHSA (up to $40,000 lifetime) to build their down payment.
What Is a Down Payment on a House?
A down payment on a house is the upfront cash portion of the purchase price you pay directly — the rest is borrowed through a mortgage. In Canada, the minimum down payment is set by federal CMHC rules and ranges from 5% to 20% depending on the home's price. The higher your down payment, the lower your mortgage balance and the less interest you pay over the life of the loan.
The down payment is not the same as your deposit. A deposit is the good-faith amount you put forward when an offer is accepted — it is counted as part of your down payment at closing, not added on top. If your offer deposit is $20,000 and your minimum down payment is $35,000, you bring the remaining $15,000 at closing.
Down payments also determine whether your mortgage is insured or uninsured. A down payment under 20% requires CMHC mortgage insurance — a premium added to your loan balance that protects the lender, not you. At 20% or more, you have a conventional uninsured mortgage with no CMHC premium. Once you've worked out your down payment, plug the numbers into our Canadian mortgage payment calculator to see your monthly payment. Use the down payment calculator to see the exact minimum for your target price.
Closing costs — legal fees, land transfer tax, home inspection, and title insurance — are separate from the down payment and are paid at closing on top of it. Budget an additional $8,000–$20,000+ depending on province and purchase price. Use the closing cost calculator to estimate your total upfront costs.
Minimum Down Payment Rules in Canada — 2026 CMHC Tiers
Under 2026 CMHC rules, the minimum down payment in Canada is 5% on homes priced up to $500,000. For homes priced from $500,000 up to below $1,500,000, the minimum is 5% on the first $500,000 plus 10% on the remainder. Homes at $1,500,000 or above require a minimum 20% down payment and do not qualify for CMHC mortgage insurance (CMHC, December 2024).
CMHC rules changed December 15, 2024
Effective December 15, 2024, two significant changes took effect: (1) CMHC mortgage loan insurance became available for homes priced under $1,500,000 (expanded from the prior limit) — buyers in that range can use the blended minimum down payment instead of requiring 20%. (2) First-time buyers and purchasers of new builds became eligible for 30-year amortization on insured mortgages, reducing monthly payments compared to the standard 25-year term (Government of Canada, September 2024).
| Home Price | Minimum Down Payment | Rate Applied | CMHC Insured? |
|---|---|---|---|
| $400,000 | $20,000 | 5% on $400,000 | Yes |
| $500,000 | $25,000 | 5% on $500,000 | Yes |
| $600,000 | $35,000 | 5% on $500,000 + 10% on $100,000 | Yes |
| $700,000 | $45,000 | 5% on $500,000 + 10% on $200,000 | Yes |
| $800,000 | $55,000 | 5% on $500,000 + 10% on $300,000 | Yes |
| $1,000,000 | $75,000 | 5% on $500,000 + 10% on $500,000 | Yes |
| $1,499,000 | $124,900 | 5% on $500,000 + 10% on $999,000 | Yes (< $1.5M) |
| $2,000,000 | $400,000 | 20% on full price — uninsured | No |
Source: CMHC (updated December 2024)
Homes Under $500,000: 5% Minimum
The minimum down payment on homes under $500,000 is 5% of the full purchase price. On a $400,000 home, that is $20,000. CMHC mortgage insurance applies — at under 10% down, the premium rate is 4.00% of the insured mortgage amount. First-time buyers purchasing insured mortgages on new builds qualify for 30-year amortization as of December 2024, reducing monthly payments compared to the standard 25-year term.
Homes from $500,000 up to below $1,500,000: Blended 5% + 10%
For homes in this range, the minimum down payment has two components: 5% on the first $500,000 ($25,000, fixed) plus 10% on every dollar above $500,000. On a $750,000 home, the minimum is $25,000 + $25,000 = $50,000. On a $1,000,000 home, the minimum is $25,000 + $50,000 = $75,000. Before December 15, 2024, a $1,000,000 home required 20% down ($200,000) — the rule change reduced that by $125,000 for eligible buyers. The minimum down payment in Canada is 5% on the first $500,000, 10% on the portion above $500,000 for homes priced under $1,500,000, and 20% on homes at $1,500,000 or above (CMHC, December 2024 rules).
Homes Over $1,500,000: 20% Required — Uninsured
Homes above $1,500,000 require 20% of the full purchase price — no CMHC insurance is available at this price level. On a $2,000,000 home, that is $400,000. These are conventional (uninsured) mortgages, and lenders set their own qualifying criteria above the 20% minimum. The OSFI B-20 stress test still applies regardless of down payment size.
How Much Down Payment Do Canadians Actually Pay?
According to the CMHC Mortgage Consumer Survey , Canadian homebuyers typically put down approximately 20% of the purchase price — well above the legal minimum. First-time buyers tend to put down less, often in the 10–15% range. In high-cost markets like Toronto and Vancouver, the average down payment in dollar terms regularly exceeds $100,000, driven more by higher home prices than higher percentage contributions.
Canadian homebuyers put down approximately 20% of the purchase price on average — well above the 5% minimum required by law (CMHC Mortgage Consumer Survey). The gap between the minimum and the actual down payment reflects two practical realities: first, buyers with larger down payments carry smaller mortgages and pay less interest over the loan's life; second, rental and investment properties require a minimum 20% down payment regardless of price, pulling the average up.
A higher down payment also eliminates or reduces the CMHC insurance premium. On a $600,000 home, going from the minimum $35,000 (5.83%) to $120,000 (20%) saves approximately $22,600 in CMHC premiums that would otherwise be added to the mortgage balance. On a $600,000 house in Canada, the minimum down payment is $35,000: 5% on the first $500,000 ($25,000) plus 10% on the remaining $100,000 ($10,000). A 20% down payment on a $600,000 home ($120,000) eliminates the CMHC insurance premium entirely and saves approximately $22,600 compared to putting down the minimum $35,000.
For buyers saving toward a down payment: on a $700,000 home, the minimum $45,000 takes roughly 2.5 years to save at $1,500/month. First-time buyers can accelerate this timeline significantly using the RRSP Home Buyers' Plan ($35,000 per person) and FHSA contributions of up to $8,000/year — both covered in the next section.
What Affects How Much Down Payment You Need?
Several factors beyond the purchase price determine how much down payment you need in Canada: whether you are buying as a first-time buyer, whether the property qualifies for CMHC insurance, whether you're purchasing a rental or owner-occupied home, and how much you need to borrow relative to the OSFI B-20 stress test qualifying rate.
Owner-occupied vs. rental property: Rental properties and second homes require a minimum 20% down payment regardless of price. CMHC insurance is not available on investment properties. This rule applies even if the property costs under $500,000 — the 5% minimum applies only to owner-occupied purchases.
Insured vs. uninsured mortgage: An insured mortgage (under 20% down) carries a CMHC premium added to the loan balance — ranging from 0.60% to 4.00% of the insured mortgage depending on the down payment percentage. An uninsured mortgage (20%+ down) has no CMHC premium but lenders may apply stricter qualifying criteria. Both mortgage types are subject to the OSFI B-20 stress test.
Stress test: qualifying rate = max(contract rate + 2%, 5.25%)
The OSFI B-20 stress test requires all federally regulated lenders to qualify borrowers at the higher of: (a) their contract mortgage rate plus 2 percentage points, or (b) the current floor of 5.25% (OSFI, as of 2026) — whichever is greater. A borrower with a 4.5% contract rate must prove they can afford payments at 6.5%. A larger down payment reduces the mortgage size and makes it easier to pass the stress test (OSFI B-20, 2024).
First-time buyer programs — RRSP HBP + FHSA
First-time buyers in Canada have two federal programs to build their down payment: (1) RRSP Home Buyers' Plan (HBP) — withdraw up to $35,000 tax-free per person ($70,000 per couple). Funds must have been held 90+ days. Repay over 15 years; amounts not repaid are added to taxable income. (2) First Home Savings Account (FHSA) — contribute up to $8,000/year and $40,000 lifetime. Contributions are tax-deductible; qualifying withdrawals are tax-free with no repayment obligation. First-time buyers in Canada can use the RRSP Home Buyers' Plan (up to $35,000 per person, $70,000 per couple) and the FHSA (up to $40,000 lifetime, $8,000 annually) to fund their down payment without paying tax on the withdrawal. These programs can be combined. See our guide on the zero down payment mortgage in Canada for related options, or use the mortgage affordability calculator to see how your down payment affects borrowing power.
Closing costs are separate from your down payment and are paid at closing in addition to it. Budget an additional $8,000–$20,000+ for legal fees, land transfer tax, home inspection, title insurance, and adjustments. Use the closing cost calculator to estimate your full upfront amount. Ontario buyers also pay provincial land transfer tax — the Ontario down payment calculator factors in both the minimum down and LTT for Ontario purchases.
Frequently asked questions
What is the minimum down payment on a house in Canada?
The minimum down payment on a house in Canada is 5% of the purchase price for homes under $500,000. For homes priced from $500,000 up to below $1,500,000, it is 5% on the first $500,000 plus 10% on the remaining amount. Homes at $1,500,000 or above require a minimum 20% down payment and do not qualify for CMHC mortgage insurance. These are the 2026 rules following the December 15, 2024 CMHC update.
How much is a down payment on a $600,000 house in Canada?
The minimum down payment on a $600,000 house in Canada is $35,000 under 2026 CMHC rules: 5% on the first $500,000 ($25,000) plus 10% on the remaining $100,000 ($10,000). With this minimum down, CMHC mortgage insurance is required. The insurance premium — 4.00% of the $565,000 insured mortgage, approximately $22,600 — is added to the loan balance at closing, not paid upfront.
What is the average down payment on a house in Canada?
According to the CMHC Mortgage Consumer Survey, Canadian homebuyers typically put down approximately 20% of the purchase price — well above the 5% minimum. First-time buyers tend to put down less, often in the 10–15% range. In high-cost markets like Toronto and Vancouver, the average down payment in dollar terms regularly exceeds $100,000, driven by higher home prices rather than higher percentage contributions (CMHC Mortgage Consumer Survey).
Can I buy a house in Canada with less than 5% down?
No. In Canada, 5% is the legally required minimum down payment for CMHC-insured financing on any residential property under $500,000. There is no standard path to a 0% down payment on a conventional purchase — though some lenders have offered gifted or borrowed down payment programs, these must still meet the 5% threshold. See our guide on zero down payment mortgages in Canada for the full picture.
How much down payment do I need for a $1,000,000 home in Canada?
The minimum down payment for a $1,000,000 home in Canada is $75,000 under 2026 CMHC rules: 5% on the first $500,000 ($25,000) plus 10% on the remaining $500,000 ($50,000). Since December 2024, homes priced below $1,500,000 qualify for CMHC-insured financing, so buyers no longer need the $200,000 (20%) that was previously required on homes over $1,000,000.
What changed with CMHC down payment rules in December 2024?
Effective December 15, 2024, two changes took effect: (1) The insurable price cap rose from $1,000,000 so that CMHC mortgage loan insurance is available for homes priced under $1,500,000 — buyers in that range can use the blended minimum (5% + 10%) instead of 20%. (Homes at $1,500,000 or above are not eligible for CMHC insurance.) (2) First-time buyers and purchasers of new builds became eligible for 30-year amortization on insured mortgages, reducing monthly payments compared to the standard 25-year term (Government of Canada, September 2024).
How long does it take to save for a down payment in Canada?
Saving time varies by market and income. On a $700,000 home, the minimum down payment is $45,000. Saving $1,500 per month takes roughly 2.5 years — but a first-time buyer can accelerate this with a $35,000 RRSP Home Buyers' Plan withdrawal plus annual FHSA contributions of up to $8,000, which are also tax-deductible. A mortgage broker or financial advisor can model the optimal savings approach for your situation.
Sources
- Canada Mortgage and Housing Corporation (CMHC). Mortgage Loan Insurance. CMHC mortgage loan insurance minimum down payment rules — Accessed April 2026.
- Government of Canada. Canada Releases Details of Enhanced Mortgage Rules. FCAC minimum down payment rules in Canada — September 2024. Accessed April 2026.
- Canada Mortgage and Housing Corporation (CMHC). Mortgage Consumer Survey. cmhc-schl.gc.ca — Accessed April 2026.