The minimum down payment in Canada depends on the price of the home. Here are the three tiers, with examples. Rules checked October 3, 2026.
The three tiers
- $500,000 or less: 5% of the price.
- $500,000 to $1,500,000: 5% of the first $500,000, plus 10% of the part above $500,000.
- $1,500,000 or more: 20% of the price.
Worked examples
- A $400,000 condo: 5% = $20,000.
- An $800,000 townhouse: $25,000 on the first $500,000, plus $30,000 on the next $300,000 = $55,000.
- A $1,500,000 house: 20% = $300,000.
Under 20% down: mortgage loan insurance
- If your down payment is less than 20% of the price, you will typically need mortgage loan insurance.
- The premium runs from 0.6% to 4.5% of the mortgage, depending on the size of your down payment.
- You can add the premium to your mortgage or pay it up front.
- Ontario charges sales tax on the premium. Your lender cannot add that tax to the mortgage, so you pay it when you get the mortgage.
The minimum is not always the right amount
A larger down payment means a smaller mortgage and a lower insurance premium, but it also leaves you less cash for closing costs and emergencies. That balance is a conversation for you and a licensed mortgage professional.
Try your own numbers: the down payment and mortgage insurance calculator. Saving for it: the FHSA and Home Buyers’ Plan planner.
Sources (official pages, checked October 3, 2026)
- Financial Consumer Agency of Canada – Down payment (minimums, mortgage loan insurance)
- CMHC – Mortgage loan insurance cost (premium table)
- Ontario – Retail sales tax (8% on insurance premiums)
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
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General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.