Minimum Down Payment in Canada
Understand minimum down payment thresholds in Canada before setting a first-home savings target.
Updated June 23, 2026
The minimum depends on the purchase price
For homes priced at $500,000 or less, the common minimum down payment is 5% of the purchase price. For homes priced above $500,000 and below $1.5 million, the minimum is 5% on the first $500,000 plus 10% on the portion above $500,000. For homes priced at $1.5 million or more, the minimum is 20%.
A lender can still require more than the minimum based on credit history, income type, property type, source of funds, or the mortgage product.
Less than 20% usually means mortgage loan insurance
If the down payment is below 20%, mortgage loan insurance is typically required. This protects the lender, not the buyer, and the premium is often added to the mortgage balance.
A bigger down payment can reduce the mortgage amount, insurance cost, and lifetime interest, but it should not empty the cash needed for closing costs, moving, repairs, furniture, and emergencies.
Next steps
Sources and limits
This page is educational and does not replace mortgage, legal, tax, or real estate advice. Confirm current rules and your personal situation before making an offer or choosing a mortgage.
Common questions
Can I buy with 5% down in Canada?
Sometimes, if the purchase price, borrower, property, and lender rules fit. A 5% down payment does not guarantee approval.
Is 20% always required?
No. It is not always required, but it avoids typical mortgage loan insurance and is required for higher-priced homes.