Minimum Down Payment Rules in Canada: What You Need at Every Price Point

By Jordan Ellis · Published August 13, 2026 · Reviewed September 14, 2026

Quick Answer

Minimum down payment in Canada: 5% on the first $500,000 of the price, 10% on the portion from $500,000 to $1,499,999, and 20% for homes at $1.5 million or more (which can't be insured). Anything under 20% requires mortgage default insurance (CMHC, Sagen, or Canada Guaranty) costing 2.8–4.0% of the mortgage, added to your balance.

“How much do I actually need down?” has a precise legal answer in Canada — and a separate, smarter financial one. Both matter.

The legal minimums

5% on the first $500,000 of the price
10% on the portion from $500,000 to $1,499,999
20% at $1.5 million and up — these homes can’t be insured at all, so 20% is mandatory

Quick reference: $400k home → $20,000. $700k → $45,000. $1M → $75,000. $1.5M → $300,000 (the cliff is real — $1.49M needs $99,000, while $1.5M needs $300,000).

The insurance that comes with small down payments

Under 20% down, federal law requires mortgage default insurance from CMHC, Sagen, or Canada Guaranty:

Down payment	Premium (of mortgage)
5–9.99%	4.0%
10–14.99%	3.1%
15–19.99%	2.8%

The premium is added to your mortgage balance — you don’t pay it in cash, but you pay interest on it for 25 years. The mortgage calculator applies the correct tier automatically so you see the real payment.

Where the money can come from

Your accounts: savings, TFSA, FHSA ($8k/year, $40k lifetime — see the FHSA guide)
Your RRSP: up to $60,000 via the Home Buyers’ Plan, repayable over 15 years
Family gifts: allowed with a signed gift letter confirming no repayment
Not allowed (mostly): borrowed money. A personal loan for the down payment counts in your TDS and usually disqualifies or shrinks the mortgage

The real question: minimum or maximum?

More down buys four things: lower payments, no (or less) insurance, access to 30-year amortizations if you aren’t a first-time or new-build buyer, and better rates (insured mortgages actually get the best rates, but the premium erases the edge under ~15% down). But an empty emergency fund after closing is its own emergency. Keep 3–6 months of expenses out of the down payment — size it with the savings goal calculator.

Then check what your down payment plus income actually qualifies you for in the stress test calculator or the salary-by-salary affordability pages.

Official sources

Rules and dollar limits change. Confirm current amounts with the official pages below before you act · Last reviewed September 14, 2026.

Mortgage loan insurance cost (CMHC)

Frequently Asked Questions

What is the minimum down payment on a $700,000 house in Canada?

$45,000 — 5% on the first $500,000 ($25,000) plus 10% on the remaining $200,000 ($20,000). Because that works out to about 6.4% down, you'll also pay mortgage default insurance at the 4.0% tier: about $26,200 on the $655,000 mortgage, added to your balance, for a financed amount of roughly $681,200.

Can I buy a house with 5% down in Canada?

Yes, on homes under $1.5 million, if you qualify under the stress test and pay mortgage default insurance. The premium scales with your down payment: 4.0% at 5% down, 3.1% at 10–15%, 2.8% at 15–20%. More down = less premium = less interest on the premium.

What counts as a valid down payment source?

Your savings, TFSA/FHSA withdrawals, RRSP via the Home Buyers' Plan ($60,000), gifted money from immediate family (with a signed gift letter), and proceeds from selling assets. Borrowed down payments (personal loans, credit lines) are generally not allowed and count against your ratios if disclosed.

Is 20% down always better?

It avoids insurance (~$20k+ on a typical purchase) and makes a 30-year amortization available even if you aren't a first-time or new-build buyer, but draining every account to hit 20% leaves you house-poor with no emergency fund. For many buyers, 10% down plus a healthy cash reserve beats 20% down and an empty bank account.