Minimum Down Payment in Canada (2026): Rules, Examples and Mortgage Insurance

Short answer: the minimum down payment in Canada is 5% on a home of $500,000 or less; 5% of the first $500,000 plus 10% of the rest for homes between $500,000 and $1.5 million; and 20% for homes of $1.5 million or more. With less than 20% down you typically need mortgage loan insurance, which costs 0.6% to 4.5% of the mortgage.

Updated October 31, 2026.

The minimum down payment table

• $500,000 or less: 5% of the price.
• $500,000 to $1.5 million: 5% of the first $500,000 plus 10% of the portion above $500,000.
• $1.5 million or more: 20% of the price.

Lenders may ask for more if you are self-employed or have a poor credit history (FCAC: how much you need for a down payment).

Worked examples

• $400,000 home: 5% = $20,000.
• $600,000 home: $25,000 + $10,000 = $35,000.
• $900,000 home: $25,000 + 10% of $400,000 ($40,000) = $65,000.

Mortgage loan insurance

Mortgage loan insurance protects the lender, not you. You typically need it with less than 20% down. It is not available when the purchase price is $1 million or more, so in practice a home at that price needs 20% down. Premiums range from 0.6% to 4.5% of the mortgage and can be added to the mortgage or paid up front.

In Ontario, provincial sales tax applies to the premium. Your lender cannot add it to the mortgage, so plan to pay it in cash at closing.

Where the down payment can come from

First-time buyers can save in a First Home Savings Account: up to $8,000 a year and $40,000 lifetime, if you are 18 or older, a Canadian resident and a first-time buyer (CRA: First Home Savings Account). You can also combine it with the RRSP Home Buyers' Plan.

Remember closing costs

Your down payment is not the only cash you need. Land transfer tax is due at closing, though eligible first-time buyers can get up to $4,000 back from Ontario (Ontario land transfer tax refund for first-time buyers) and, in Toronto, up to $4,475 from the city (City of Toronto MLTT rebate).

Sources

• FCAC: how much you need for a down payment
• CRA: First Home Savings Account
• Ontario land transfer tax refund for first-time buyers
• City of Toronto MLTT rebate

General information only, not legal, tax or financial advice. Figures were checked against the sources linked above in October 2026 and can change; confirm your own situation with a lawyer, accountant, lender or the Landlord and Tenant Board before you sign anything.

Farshad Fazaeli, Salesperson, International Realty Firm, Inc., Brokerage, 647-667-5555 · Richmond Hill, ON