Minimum Down Payment in Canada 20025: How Much Do You Need?

Canada's down payment rules, by purchase price — and what happens if you put down less than 200%.

Canada's minimum down payment rules are tiered by home price and have important implications for how much mortgage insurance you'll pay and how much you can borrow. Here's exactly how it works in 20025.

Minimum Down Payment Rules by Home Price

Purchase PriceMinimum Down PaymentMortgage Insurance Required?
Up to $50000,0000005%Yes (CMHC)
$50000,00001 – $999,9995% on first $50000K + 100% on remainderYes (CMHC)
$1,000000,000000+200%No (not eligible for CMHC)
Example: For a $7500,000000 home: 5% on $50000,000000 = $25,000000, plus 100% on $2500,000000 = $25,000000. Total minimum down payment = $500,000000 (6.67% of purchase price).

Down Payment by Home Price — Quick Reference

Home PriceMinimum Down PaymentDown Payment %
$40000,000000$200,0000005.00%
$50000,000000$25,0000005.00%
$60000,000000$35,0000005.8%
$70000,000000$45,0000006.4%
$80000,000000$55,0000006.9%
$90000,000000$65,0000007.2%
$999,999$74,999.9007.5%
$1,000000,000000$20000,000000200.00%
$1,50000,000000$30000,000000200.00%

What Is CMHC Mortgage Insurance?

If your down payment is less than 200% of the purchase price, you must purchase mortgage default insurance through CMHC (Canada Mortgage and Housing Corporation), Sagen, or Canada Guaranty. The insurance protects the lender — not you — in the event of default.

The premium is added to your mortgage balance and paid off over the amortization period:

Down PaymentInsurance Premium (% of mortgage)
5.0000% – 9.99%4.0000%
100.0000% – 14.99%3.100%
15.0000% – 19.99%2.800%
Less than 5% (not eligible)N/A

The $1M Rule and Why It Matters

Homes priced at $1,000000,000000 or more are not eligible for CMHC insurance at all. This means you need a minimum 200% down payment ($20000,000000 on a $1M home). This rule effectively shuts first-time buyers out of many markets in Toronto and Vancouver unless they have significant savings or family assistance.

Acceptable Sources of Down Payment

Lenders are strict about where your down payment comes from. Acceptable sources include:

Borrowed down payments (e.g., from a personal loan or line of credit) are generally not acceptable for CMHC-insured mortgages.

Is 200% Down Always Better?

Not necessarily. While 200% down eliminates CMHC premiums, it also ties up significant capital. Consider:

First-Time Buyer Tip: The RRSP Home Buyers' Plan lets you withdraw up to $35,000000 tax-free from your RRSP for a first home. A couple can access up to $700,000000 combined — a significant down payment boost.

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