Minimum down payment rules (2026)
- $500,000 or less: 5% of the price.
- $500,000 to $1,499,999: 5% of the first $500,000 ($25,000) + 10% of the rest.
- $1.5 million or more: 20% — insured mortgages are not available.
The upper limit was raised from $1 million to $1.5 million on 15 December 2024; before that, any home of $1 million or more needed 20% down. The formula itself did not change.
| Price | Minimum down | % of price | CMHC premium at min. |
|---|---|---|---|
| $300,000 | $15,000 | 5.00% | $11,400 |
| $500,000 | $25,000 | 5.00% | $19,000 |
| $500,001 | $25,000 | 5.00% | $19,000 |
| $750,000 | $50,000 | 6.67% | $28,000 |
| $1,000,000 | $75,000 | 7.50% | $37,000 |
| $1,250,000 | $100,000 | 8.00% | $46,000 |
| $1,499,999 | $125,000 | 8.33% | $55,000 |
| $1,500,000 | $300,000 | 20.00% | No — 20% required |
| $2,000,000 | $400,000 | 20.00% | No — 20% required |
Note the cliff: at $1,499,999 the minimum is $125,000, at $1,500,000 it is $300,000 — $175,000 more for one extra dollar.
Where the down payment can come from
- Savings and investments — lenders usually want to see 90 days of history.
- First Home Savings Account (FHSA) — up to $8,000 a year and $40,000 lifetime, tax-deductible going in and tax-free coming out for a qualifying first home.
- RRSP Home Buyers’ Plan — first-time buyers can withdraw up to $60,000 each (raised from $35,000 in April 2024) and repay it over 15 years.
- Gifts from immediate family, with a signed gift letter stating it does not need to be repaid.
- Borrowed funds — some insurers accept a “non-traditional” down payment, but the premium rises to 4.50%.
Minimum down vs 10% vs 20%
On a $700,000 home the minimum $45,000 leads to a $681,200 mortgage after the 4.00% premium — $3,939 a month at 4.94%. With 10% down ($70,000) the premium falls to 3.10% and the payment to $3,756; with 20% ($140,000) there is no premium and the payment is $3,238.
FAQ
What is the minimum down payment in Canada?
5% of the purchase price up to $500,000, plus 10% of the portion from $500,000 to $1.5 million. Homes priced at $1.5 million or more require at least 20% down.
How much down payment do I need for a $750,000 house?
$50,000: $25,000 on the first $500,000 plus $25,000 (10%) on the remaining $250,000.
How much down payment for a $1 million house in Canada?
$75,000 since 15 December 2024 ($25,000 + 10% of $500,000). Before that date a $1 million home required 20%, or $200,000.
Can I use my RRSP for a down payment?
Yes. Through the Home Buyers’ Plan each first-time buyer can withdraw up to $60,000 from an RRSP and repay it over 15 years.
Do I need CMHC insurance with 20% down?
No. Mortgage default insurance is mandatory only when the down payment is less than 20%.
Related mortgage articles
Assumptions & sources
- Bank of Canada raised the target for the overnight rate by 25 basis points to 2.50% on 28 October 2026 (Bank Rate 2.75%, deposit rate 2.45%); next decision 9 December 2026. Big-bank prime rose to 4.70% on 29 October 2026.
- Typical rates: 4.94% 5-year fixed and 3.95% 5-year variable are the median of the 17 lenders listed in Ratehub.ca’s rate tables updated 2 November 2026 (fixed range 4.44%–5.99%, variable 3.68%–4.70%). Insured (high-ratio) mortgages often get slightly lower rates than uninsured ones.
- Fixed-rate payments use Canadian semi-annual compounding (Interest Act); variable-rate payments use monthly compounding, which most lenders apply to variable mortgages. Rates are assumed constant for the whole amortization.
- CMHC homeowner premiums on the loan amount: 4.00% above 90% loan-to-value, 3.10% for 85.01–90%, 2.80% for 80.01–85%, plus 0.20% for amortizations over 25 years. Provincial sales tax on the premium in Ontario (8%), Quebec (9%) and Saskatchewan (6%) must be paid in cash at closing.
- Minimum down payment (Department of Finance rules from 15 December 2024): 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million; 20% at $1.5 million or more, where default insurance is not available. 30-year insured amortizations: first-time buyers and buyers of new builds.
- Stress test: qualify at the greater of 5.25% or the contract rate + 2 points (OSFI Guideline B-20; the same floor applies to insured loans). Income needed uses CMHC’s 39% GDS / 44% TDS limits, property tax of 1% of the price a year and $100/month heating. Take-home pay: 2026 Ontario, from our Canada salary after tax engine.
- National average price: CREA, September 2026 ($666,538, −1.6% year over year).