Canadian banking guide
How Much Down Payment Do You Need in Canada? (2026 Guide)
Author
CanadianBankNews Editorial Team
Updated
July 7, 2026
Reading time
2 min read
Guide overview
This CanadianBankNews guide turns common banking and mortgage questions into a practical answer, links to relevant tools, and points readers to official sources where possible.
In this guide
Try this with your own numbers
Use the calculator, compare scenarios, or ask the AI Mortgage Advisor how this guide changes for your income, home price, down payment, debts, and province.
Short answer
In Canada, the minimum down payment depends on the purchase price. The minimum is 5% for the first $500,000, 10% for the portion above $500,000 and below $1.5 million, and 20% for homes priced at $1.5 million or more. For example, a $700,000 home has an estimated minimum down payment of $45,000.
Key takeaways
- Minimum down payment is tiered by purchase price.
- A $700,000 home generally requires at least $45,000 down.
- Homes of $1.5 million or more generally require 20% down.
- A larger down payment can lower monthly payment and mortgage-insurance pressure.
Quick answer
The federal minimum down payment structure is tiered. For a home below $500,000, the minimum is 5%. For a home from $500,000 to below $1.5 million, the minimum is 5% of the first $500,000 plus 10% of the remaining amount. For homes of $1.5 million or more, buyers generally need at least 20% down.
Example calculations
$500,000 home: minimum down payment is about $25,000. $700,000 home: $25,000 plus 10% of $200,000, or about $45,000. $900,000 home: $25,000 plus 10% of $400,000, or about $65,000. $1.5 million home: 20% down is about $300,000.
Why buyers may put more than the minimum
A larger down payment can reduce the mortgage balance, lower monthly payments, improve loan-to-value, and potentially reduce or avoid mortgage default insurance. The trade-off is that the buyer uses more cash upfront and may have less available for closing costs or emergencies.
First-time and repeat buyers
First-time buyers often test 5-10% down scenarios for eligible properties. Repeat buyers may use equity from a previous home and often compare 20% down scenarios, especially if they want to avoid mortgage default insurance.
What to try next
Compare the same property with the minimum down payment, 10% down, and 20% down. The AI Mortgage Advisor can show how each option affects payment, LTV, GDS, and TDS.
Frequently asked questions
What is the minimum down payment on a $700,000 home?
The estimated minimum is $45,000: 5% of the first $500,000 equals $25,000, plus 10% of the next $200,000 equals $20,000.
Does 20% down always mean no mortgage insurance?
A 20% down payment usually avoids standard mortgage default insurance for many owner-occupied purchases, but lender and property-specific rules can still apply.
Is this financial advice?
No. CanadianBankNews provides educational information and AI-assisted guidance. A lender, broker, accountant, lawyer, or qualified professional should confirm details for a specific situation.
Can rules and rates change?
Yes. Mortgage rates, lender policies, government programs, tax rules, and underwriting guidelines can change. Always confirm current details before making a decision.
Sources
These official references are included so readers can verify important rules directly.
Disclaimer
CanadianBankNews provides educational information and AI-assisted guidance. It is not a lender, mortgage broker, or financial advisor. Confirm important decisions with a licensed professional.