$500,000 or less
5%
The minimum down payment is 5% of the purchase price.
Explore the Guide
Understand your down payment options
Start with the basics, explore acceptable sources of funds, and learn what else to plan for before purchasing your home.
Quick Answer
Most Canadians don't need a 20% down payment.
The minimum down payment depends on the purchase price, the type of property you're buying and whether mortgage default insurance applies. Understanding the rules early can help you set a realistic savings goal and avoid surprises when you're ready to buy.
Why This Matters
Your down payment affects much more than qualifying for a mortgage.
The amount you put toward your purchase can influence how much you borrow, whether mortgage default insurance is required, your monthly payments and how much cash you still have available after moving in.
It shapes your mortgage.
Your down payment affects the amount borrowed, the type of mortgage available and what your payments may look like.
It helps you prepare.
Knowing the requirements early helps you create a savings plan, budget for other expenses and shop with greater confidence.
The Basic Rules
How much down payment do you need?
For an eligible owner-occupied home, the minimum is calculated using the purchase price. You may choose to put down more than the minimum when doing so supports your overall plan.
$500,000 to under $1.5 million
5% + 10%
The minimum is 5% of the first $500,000 and 10% of the portion above $500,000.
$1.5 million or more
20%
The minimum down payment is 20% of the purchase price.
Examples
What the calculation can look like
$450,000 home
5% of $450,000
Minimum
$22,500
$750,000 home
5% of $500,000 + 10% of $250,000
Minimum
$50,000
$1,200,000 home
5% of $500,000 + 10% of $700,000
Minimum
$95,000
Want to check your own numbers?
Enter a purchase price and available funds to estimate your minimum down payment and mortgage amount.
Sources of Funds
Where can your down payment come from?
Your down payment does not necessarily have to come from one account. What matters is that the source is acceptable and can be properly documented.
Personal Savings
Money held in your chequing, savings, TFSA or other investment accounts may be used toward your down payment.
First Home Savings Account
Eligible first-time buyers may be able to make a qualifying tax-free withdrawal from an FHSA.
RRSP Home Buyers’ Plan
Eligible buyers may be able to withdraw funds from their RRSP through the Home Buyers’ Plan.
A Gift From Family
Some lenders allow an immediate family member to provide part or all of the down payment as a genuine gift.
Sale of Another Property
Equity from the sale of an existing property may be used toward the purchase of your next home.
Other Verified Assets
Investments and other acceptable assets may also be used when their ownership and history can be documented.
The Paper Trail
Your lender needs to understand where the money came from.
You may be asked to provide approximately 90 days of account statements showing your name, account number, transactions and current balance.
Transfers between accounts should be supported by statements from both sides of the transfer. Large or unusual deposits may also need an explanation and supporting documents.
Gifted Down Payments
Family support may help you purchase sooner.
A family member may be able to provide part or all of your down payment as a genuine financial gift, subject to the lender's requirements.
What You Should Know
A gifted down payment needs to be documented clearly.
The person providing the money will generally sign a gift letter confirming that repayment is not expected.
The lender may limit who can provide the gift, often requiring it to come from an immediate family member.
Proof of the deposit into your account may be required before the mortgage completes.
The donor may also need to show where the gifted funds came from, particularly when the transfer is recent.
A gift and a loan are not the same thing.
When the money must be repaid, the payment obligation may need to be included in your mortgage qualification.
First-Time Buyer Programs
Your FHSA and RRSP may help you build your down payment.
Eligible first-time buyers may be able to use the First Home Savings Account, the Home Buyers' Plan or both for the same qualifying purchase.
First Home Savings Account
Save toward an eligible first home.
FHSA contributions are generally tax-deductible, and an eligible qualifying withdrawal can be made tax-free. Your participation room begins when you open your first FHSA.
Annual limit
$8,000
Lifetime limit
$40,000
Home Buyers' Plan
Use eligible funds held in your RRSP.
The Home Buyers' Plan allows an eligible buyer to withdraw funds from an RRSP toward a qualifying home. Withdrawn amounts are generally repaid to the RRSP over a 15-year period.
Withdrawal limit
$60,000
Repayment period
15 years
Eligibility rules and tax consequences can vary. Confirm the requirements with an accountant or qualified financial adviser before making a withdrawal.
Mortgage Default Insurance
What happens when your down payment is below 20%?
An eligible mortgage with less than 20% down will generally require mortgage default insurance. The insurance protects the lender, but it allows qualified buyers to purchase without waiting until they have saved a full 20%.
The premium is usually calculated as a percentage of the mortgage and added to the amount borrowed rather than paid entirely upfront.
Less than 20% does not automatically mean you are unprepared.
The right down payment is not always the largest possible down payment. Your decision should also consider:
Your monthly payment
Your available emergency savings
Your closing and moving costs
Your timeline for purchasing
The mortgage options available
Plan Beyond the Down Payment
Leave room for the costs of completing your purchase.
Your full savings balance should not automatically become your down payment. Other costs may be due before or on your completion date.
Open the Closing Costs CalculatorProperty transfer tax
Provincial tax may apply based on the property value and any exemptions available.
Legal or notary fees
A lawyer or notary completes the legal transfer and mortgage registration.
Property adjustments
You may reimburse the seller for prepaid property taxes, utilities or strata fees.
Inspection and appraisal
Depending on the property and mortgage, inspection or appraisal costs may apply.
Moving expenses
Plan for movers, supplies, utility setup and other transition costs.
Emergency savings
Keeping a reserve can help with repairs and unexpected expenses after possession.
Common Mistakes
A little planning can prevent avoidable delays.
Down payment issues often come from documentation and timing rather than the amount itself.
01
Assuming you must save 20%
Many buyers delay their plans because they believe a 20% down payment is always required. Depending on the purchase price and property, a smaller down payment may be possible.
02
Using every available dollar
Putting all your savings into the down payment can leave you without enough money for closing costs, moving expenses, repairs or an emergency fund.
03
Moving money without a paper trail
Large transfers, cash deposits and recently opened accounts may require additional documentation. Keeping a clear history of your funds can make approval easier.
04
Accepting a repayable gift
A gifted down payment generally needs to be a genuine gift rather than an undisclosed loan. Repayment obligations can affect qualification.
05
Forgetting about closing costs
Your down payment is not the only cash required. Legal fees, adjustments, property transfer tax and other expenses may also be due.
06
Waiting until an offer is accepted
Reviewing your down payment sources before shopping gives you time to organize statements, gift letters and transfers properly.
Before You Start Shopping
Get your down payment ready before you find the home.
Organizing the money and supporting documents early can make your mortgage approval much smoother.
Confirm the minimum down payment for your price range.
Identify every account or person contributing funds.
Keep at least 90 days of complete account statements.
Document transfers and large deposits as they occur.
Arrange gift letters before the lender requests them.
Keep separate funds available for closing costs.
Continue Exploring
Take the next step in planning your purchase.
Explore the tools and guides that connect naturally with your down payment plan.
Mortgage Tool
Down Payment Calculator
Estimate the minimum down payment, mortgage amount and potential mortgage insurance.
Open CalculatorMortgage Tool
Closing Costs Calculator
Estimate the additional expenses you may need to complete your home purchase.
Open CalculatorLearning Centre
First-Time Home Buyer Guide
Follow the home-buying process from early preparation through receiving your keys.
Read GuideCommon Questions
Down payment questions, answered.
Do I need a 20% down payment to buy a home?+
Not necessarily. For an eligible owner-occupied purchase below $1.5 million, the minimum down payment may be less than 20%. A down payment below 20% will generally require mortgage default insurance.
Can my entire down payment be gifted?+
It may be possible, depending on the lender, mortgage program and relationship between the buyer and the person providing the gift. A signed gift letter and proof that the funds were deposited may be required.
How long does my down payment need to be in my account?+
Lenders commonly review approximately 90 days of account history. They may ask for additional documents when funds were transferred recently or came from another source.
Can I borrow my down payment?+
Some mortgage programs may permit borrowed funds, but the required loan payments must be included when qualifying. The source must be disclosed and accepted by the lender.
Can I use both an FHSA and the Home Buyers’ Plan?+
Eligible buyers may be able to use a qualifying FHSA withdrawal and an RRSP withdrawal through the Home Buyers’ Plan for the same home.
Does a larger down payment always mean a better mortgage?+
Not always. A larger down payment reduces the amount borrowed, but mortgage pricing can also depend on whether the mortgage is insured, insurable or uninsured. The overall structure should be compared.
How much should I keep for closing costs?+
The amount depends on your location, purchase price and circumstances. Your budget may need to include legal fees, property transfer tax, adjustments, inspection costs, appraisal costs and moving expenses.
A Note from Kiersten
Not sure which down payment strategy makes the most sense?
You do not need to figure everything out before reaching out. I can help you review the funds you have available, understand the documents a lender may need and create a realistic plan for your purchase—without pressure or judgment.