A $650,000 home needs at least $40,000 down in Canada, which is 6.2% of the price. Bring $130,000, or 20%, and mortgage insurance drops away. Type in your price and savings above. You will see where you stand.
The federal minimum
The rule works in tiers. You need 5% of the first $500,000 and 10% of the slice between $500,000 and $1,500,000. Once the price reaches $1,500,000, the minimum is 20%, since insured mortgages end at that price. So $650,000 requires $25,000 plus $15,000. Not a flat 5%.
What 20% changes
Put down less than 20% and the mortgage needs default insurance, with the premium added to your loan. On the $650,000 example, 10% down leaves a $585,000 loan and an $18,135 premium, so you borrow $603,135. At 15% down the premium falls to $15,470. At 20% there is no premium and the loan is $520,000. The table under the result runs the same steps for your price.
Cash beyond the down payment
Closing day takes more than the down payment. Land transfer tax, legal fees and other costs come on top, and Toronto charges its tax twice. The closing costs calculator adds them up. For the largest item, read our guide to the Ontario land transfer tax.
Sources of the money
Most buyers use savings. A family gift works too, as long as the donor signs a letter saying it is a gift and not a loan. First-time buyers can borrow from their own RRSP through the Home Buyers’ Plan, up to $60,000 at the time of writing. A First Home Savings Account lets you save for a home tax free. Confirm the current limits with the Canada Revenue Agency before building a plan on them.
Borrowing the down payment
Lenders generally expect the money to be your own. A borrowed down payment can hurt approval, because the new debt counts against you. Ask first.
Aiming above the minimum
Plenty of buyers save more than the minimum. A larger down payment lowers the payment, cuts interest and can avoid insurance. On the $650,000 example, 20% down gives a payment about $476 a month lower than 10% down, at 4.85% over 25 years. The price is time. Saving for longer means the market can move in either direction while you wait, and a home that fits your budget today may not next year.
A worked example
Suppose $50,000 is saved for a $650,000 home. That beats the $40,000 minimum by $10,000 and equals 7.7% of the price. Buying now is possible. Insurance would apply. Reaching $130,000 would remove the premium, and the calculator shows the distance to that number.
Where to go next
With the down payment settled, the mortgage payment calculator shows the payment that follows. The CMHC insurance calculator shows what insurance costs at your price.
Frequently asked questions
What is the minimum down payment in Canada?
It is 5% of the first $500,000 and 10% of the part up to $1,500,000. At $1,500,000 or more it is 20%.
How much down payment do I need for a $650,000 home?
$40,000, which is 6.2% of the price.
Is 20% down required?
No, except at $1,500,000 or more. With less than 20% you pay for mortgage default insurance.
Can a gift count as my down payment?
Yes. Lenders ask for a signed letter that says the money is a gift and does not need to be repaid.
Can I use my RRSP for a down payment?
First-time buyers can borrow from an RRSP under the Home Buyers' Plan and repay it over time. Check the current limit with the CRA.
Does the down payment include closing costs?
No. Closing costs are extra and are paid in cash on closing day.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.