The rule
- 5% of the first $500,000 of the price.
- 10% of the part between $500,000 and $1,500,000.
- 20% of the whole price at $1.5 million or more.
Examples
| Price | Minimum down | As a % |
|---|---|---|
| $400,000 | $20,000 | 5.0% |
| $650,000 | $40,000 | 6.2% |
| $800,000 | $55,000 | 6.9% |
| $1,000,000 | $75,000 | 7.5% |
| $1,499,000 | $124,900 | 8.3% |
| $1,500,000 | $300,000 | 20.0% |
Notice the jump at $1.5 million: above that, mortgage insurance isn’t available, so you need 20%.
Where the money can come from
- Savings and investments, including a First Home Savings Account (FHSA): up to $40,000 of tax-deductible contributions, withdrawn tax-free.
- The RRSP Home Buyers’ Plan: up to $60,000 per person, repaid over 15 years.
- A gift from an immediate family member, with a signed gift letter.
- Proceeds from selling another property.
Lenders want 90 days of statements showing where the money came from. Borrowed down payments are restricted for insured mortgages.
Remember closing costs
You also need at least 1.5% of the price for closing costs: land transfer tax, legal fees and more. See the closing costs calculator.
Try it with your numbers: Find your minimum down payment →