- Minimum down payment is 5% on the first $500,000, 10% on the portion to $1.5 million, and 20% from $1.5 million.
- Under 20% down, the mortgage needs default insurance (for example CMHC), added to the loan.
- Budget 1.5% to 4% of the price for closing costs, mostly land transfer tax.
- Get a rate hold before you shop so a rate rise doesn't shrink your budget.
How much do I need for a down payment?
| Purchase price | Minimum down payment | Example |
|---|---|---|
| $500,000 or less | 5% | $450,000 → $22,500 |
| $500,000 to $1.5 million | 5% of $500,000 + 10% of the rest | $800,000 → $55,000 |
| $1.5 million or more | 20% | $1,600,000 → $320,000 |
Federal rules; insured mortgages are available on homes under $1.5 million.
What is a rate hold?
A rate hold (pre-approval) guarantees a rate for a set period, usually 90 to 120 days, while you shop. If rates fall, most lenders give you the lower rate at funding. Bids on MortgageBids.ca state the hold period.
What closing costs should I budget?
Land transfer tax is the largest closing cost in most provinces. Add legal fees, title insurance, inspection, adjustments and moving. Use the closing costs calculator for your province.
Insured vs uninsured purchase mortgages
With less than 20% down your mortgage is insured. Insured rates are often the lowest because the insurer carries the default risk, but you pay a premium. With 20% or more down you avoid the premium; rates are usually slightly higher. See insured mortgage rates.
Frequently asked questions
How much mortgage can I afford?
Lenders use your gross debt service (GDS, up to 39%) and total debt service (TDS, up to 44%) at the stress-test rate. The affordability calculator does the math.
Can I add renovation costs to my purchase?
Yes, with a purchase plus improvements mortgage. The lender advances the renovation money after the work is done and inspected.
Can first-time buyers get a 30-year amortization?
Yes. Since December 15, 2024, first-time buyers and buyers of newly built homes can get insured mortgages amortized over 30 years.
- FCAC: Saving for a down payment (checked October 7, 2026)
- CMHC: Mortgage loan insurance premiums (checked October 7, 2026)
Related
Challenge your mortgage rate
Connect with verified lenders and brokers bidding on your mortgage. Free for homeowners, three short steps.