In Canada, the minimum down payment depends on the price of the home. The table below shows the minimum, the mortgage insurance premium and the monthly payment for homes from $300,000 to $1,500,000, so you can find your price and see the cost right away.
The rule
- $500,000 or less: 5% of the price.
- Above $500,000 and below $1,500,000: 5% of the first $500,000 + 10% of the rest.
- $1,500,000 or more: 20% of the price, because insured mortgages are available only below $1.5 million.
With less than 20% down, your mortgage must be insured. At the minimum down payment, the loan-to-value ratio is above 90% at every price below $1.5 million, so the standard premium is 4.00% of the loan.
Table by home price
Assumptions: minimum down payment, 4.00% premium added to the mortgage, 4.49% interest rate, 25-year amortization, monthly payments. Amounts are rounded to the nearest dollar. The rate is an example, not a quote.
| Home price | Minimum down | % of price | Premium | Total mortgage | Monthly payment |
|---|---|---|---|---|---|
| $300,000 | $15,000 | 5.00% | $11,400 | $296,400 | $1,639 |
| $350,000 | $17,500 | 5.00% | $13,300 | $345,800 | $1,912 |
| $400,000 | $20,000 | 5.00% | $15,200 | $395,200 | $2,185 |
| $450,000 | $22,500 | 5.00% | $17,100 | $444,600 | $2,458 |
| $500,000 | $25,000 | 5.00% | $19,000 | $494,000 | $2,731 |
| $550,000 | $30,000 | 5.45% | $20,800 | $540,800 | $2,990 |
| $600,000 | $35,000 | 5.83% | $22,600 | $587,600 | $3,249 |
| $650,000 | $40,000 | 6.15% | $24,400 | $634,400 | $3,508 |
| $700,000 | $45,000 | 6.43% | $26,200 | $681,200 | $3,766 |
| $750,000 | $50,000 | 6.67% | $28,000 | $728,000 | $4,025 |
| $800,000 | $55,000 | 6.88% | $29,800 | $774,800 | $4,284 |
| $850,000 | $60,000 | 7.06% | $31,600 | $821,600 | $4,543 |
| $900,000 | $65,000 | 7.22% | $33,400 | $868,400 | $4,802 |
| $950,000 | $70,000 | 7.37% | $35,200 | $915,200 | $5,060 |
| $1,000,000 | $75,000 | 7.50% | $37,000 | $962,000 | $5,319 |
| $1,100,000 | $85,000 | 7.73% | $40,600 | $1,055,600 | $5,837 |
| $1,200,000 | $95,000 | 7.92% | $44,200 | $1,149,200 | $6,354 |
| $1,300,000 | $105,000 | 8.08% | $47,800 | $1,242,800 | $6,872 |
| $1,400,000 | $115,000 | 8.21% | $51,400 | $1,336,400 | $7,389 |
| $1,499,999 | $125,000 | 8.33% | $55,000 | $1,429,999 | $7,907 |
| $1,500,000 | $300,000 | 20.00% | None | $1,200,000 | $6,635 |
In Ontario, Quebec and Saskatchewan, provincial sales tax also applies to the premium. This tax can’t be added to the mortgage, so you pay it in cash at closing. Closing costs are also extra: CMHC estimates 1.5% to 4% of the price.
The $1.5 million threshold
Look at the last two rows. A price increase of one dollar raises the minimum down payment from about $125,000 to $300,000, an extra $175,000 in cash. The reason is that a home priced at $1.5 million or more cannot have an insured homeowner mortgage, so you must put down 20%.
The monthly payment in the last row is lower because you borrow less and pay no premium. That doesn’t help if you don’t have the larger down payment. If you are looking near this price, check your savings first. CMHC applies its limit to the purchase price or the as-improved value, so ask your lender how this works if an appraisal gives a different value.
Worked example: more than the minimum
The minimum is not always the best choice. A larger down payment lowers both the loan and the premium rate. Here is an $850,000 home at the same rate and amortization:
| Down payment | Premium rate | Premium | Total mortgage | Monthly payment |
|---|---|---|---|---|
| $60,000 (minimum, 7.06%) | 4.00% | $31,600 | $821,600 | $4,543 |
| $85,000 (10%) | 3.10% | $23,715 | $788,715 | $4,361 |
| $127,500 (15%) | 2.80% | $20,230 | $742,730 | $4,107 |
| $170,000 (20%) | None | $0 | $680,000 | $3,760 |
Adding $25,000 to reach 10% saves $7,885 of premium, and it lowers the payment by about $182 a month. Paying 20% removes the premium completely, but it takes $110,000 more in cash than the minimum.
Notes
- 30-year amortization. If you qualify for an insured 30-year amortization (first-time buyers and new builds), the premium is 0.20% higher.
- Borrowed down payments. CMHC’s premium is 4.50% at 90.01% to 95% loan-to-value with a non-traditional down payment.
- Properties with 3 or 4 units. These need at least 10% down, and a home you won’t live in normally needs 20%. See rental property mortgages.
- Your lender can ask for more. Lenders may require a larger down payment if you are self-employed or have a poor credit history.
- Gifts. A gift from a relative can be part of your down payment.
Enter your exact price in the CMHC insurance calculator and read CMHC mortgage insurance explained. To see whether your income supports the payment, read how much house you can afford by salary.
Sources: CMHC, general requirements; CMHC, premiums and provincial sales tax; Canada Guaranty, premiums by amortization. All payments and premiums were calculated with this site’s mortgage engine.