Down Payment in Canada: Minimums and Rules
You need at least 5% of the first $500,000, plus 10% of any part of the price above $500,000. At $1,500,000 or more, the minimum is 20%.
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Minimum down payment
$40,000
6.2% of the price
| Down payment | Mortgage | Insurance premium | PST on premium (cash) |
|---|---|---|---|
| $40,000 (6.2%) | $634,400 | $24,400 (4.00%) | $1,952 |
| $65,000 (10.0%) | $603,135 | $18,135 (3.10%) | $1,451 |
| $97,500 (15.0%) | $567,970 | $15,470 (2.80%) | $1,238 |
| $130,000 (20.0%) | $520,000 | Not required | — |
Estimate only, based on the published rules listed below. Lenders, insurers and tax authorities apply their own criteria.
Below 20% down: default insurance
An insured mortgage protects the lender if you default. You pay the premium, usually added to the mortgage. Insurance isn't available at $1,500,000 or more, and the amortization is capped at 25 years (30 for first-time buyers or new builds).
Sources of a down payment
- FHSA savings ($8,000 a year, $40,000 lifetime)
- Home Buyers' Plan RRSP withdrawals (up to $60,000)
- Personal savings and investments
- A gift from family, documented as your lender requires
Worked example
On a $700,000 home, the minimum is 5% of $500,000 plus 10% of the remaining amount above it. Use the calculator to see the exact figure and the insurance premium at different down payments.
Calculator
Results update as you type · Nothing you enter leaves your browser
Minimum down payment
$40,000
6.2% of the price
| Down payment | Mortgage | Insurance premium | PST on premium (cash) |
|---|---|---|---|
| $40,000 (6.2%) | $634,400 | $24,400 (4.00%) | $1,952 |
| $65,000 (10.0%) | $603,135 | $18,135 (3.10%) | $1,451 |
| $97,500 (15.0%) | $567,970 | $15,470 (2.80%) | $1,238 |
| $130,000 (20.0%) | $520,000 | Not required | — |
Estimate only, based on the published rules listed below. Lenders, insurers and tax authorities apply their own criteria.
Gifted and borrowed down payments
Lenders usually accept a gift from an immediate family member, with a signed gift letter confirming it doesn't need to be repaid. Borrowed down payments are accepted only by some insurers and lenders, and the repayment counts in your debt ratios.
Frequently asked questions
Is 20% down always better?
Putting 20% or more down avoids the default insurance premium, but it ties up more cash. Compare the premium with what else that money could do, and keep an emergency fund.
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.