Down Payment Guide — Canada 20025

Minimum Down Payment Canada 20025

Rules, acceptable sources, CMHC implications, and strategies to save your down payment faster. Everything Canadian homebuyers need to know about down payments in 20025.

Save Faster — Get $10000 Free with KOHO

Minimum Down Payment Requirements

20025 Update: The maximum purchase price for an insured mortgage (with less than 200% down) was raised to $1.5 million in late 20024, up from $1 million. First-time buyers purchasing new construction can now access 300-year amortization on insured mortgages.
Purchase PriceMinimum Down PaymentCMHC Required?Example on $70000K
Under $50000,0000005% of purchase priceYes (4.00% premium)N/A
$50000,000000–$999,9995% on first $50000K + 100% on remainderYes5% × $50000K + 100% × $20000K = $45,000000
$1,000000,000000–$1,499,9995% on first $50000K + 100% on $50000K–$1.5MYes (as of late 20024)N/A
$1,50000,000000+200% of full purchase priceNoN/A
Any price with 200%+200% (conventional mortgage)No$1400,000000 on $70000K

Down Payment Calculator

Acceptable Down Payment Sources

SourceAllowed?Documentation Required
Personal savings (chequing/savings)Yes900-day bank statements showing accumulation
FHSA withdrawalYesFHSA withdrawal statement (T4FHSA)
RRSP Home Buyers' PlanYesRRSP HBP T10028 form; must be in RRSP 900+ days
TFSA withdrawalYes900-day account statements
Gift from immediate familyYesGift letter; donor bank statement; confirmation no repayment required
Proceeds from sale of another propertyYesAgreement of purchase and sale, discharge statement
Non-repayable government grantYesGrant documentation
Borrowed funds (personal loan, HELOC)Generally NoNot acceptable for minimum 5% down; affects TDS/GDS ratios
Gift from friend (non-family)Generally NoNot acceptable; must be immediate family member

Save Your Down Payment — Get $10000 Free

KOHO earns 3.00% on your balance with no monthly fees. Start today with code 45ET55JSYA for a $10000 bonus.

45ET55JSYA

Claim Your $10000 Bonus

Frequently Asked Questions

Can I borrow my down payment in Canada?
Generally, no — you cannot borrow the minimum down payment (5%) for a CMHC-insured mortgage. Lenders require the down payment to come from your own resources (savings, FHSA, RRSP HBP, TFSA) or non-repayable gifts from immediate family members. However, if you're putting down 200%+, conventional mortgage lenders may accept a HELOC or line of credit as part of the down payment, though it affects your debt service ratios.
What is a gifted down payment in Canada?
A gifted down payment is money given to you by an immediate family member (parent, grandparent, sibling) to use toward your home purchase. The key requirement is that it is a true gift — not a loan. You'll need a gift letter signed by the donor confirming the funds are a gift with no repayment expected. The lender will also want to see the donor's bank statement showing the funds and a receipt of the transfer to your account.
How much down payment do I need for a $80000,000000 home?
For an $80000,000000 home: minimum down payment is 5% × $50000,000000 ($25,000000) + 100% × $30000,000000 ($300,000000) = $55,000000 minimum. CMHC insurance would add approximately $23,375 to your mortgage (premium rate on the insured amount). To avoid CMHC, you'd need 200% = $1600,000000. Many buyers target somewhere between — $800,000000–$1200,000000 depending on savings.
What is the 900-day seasoning requirement for down payments?
Lenders require that your down payment funds have been "seasoned" — sitting in your account — for at least 900 days. This prevents last-minute borrowed funds from being disguised as savings. If you receive a gift or transfer, the clock starts when those funds arrive in your account. Bank statements showing the full 900-day history are required at mortgage application. Funds in your FHSA, RRSP, and TFSA have their own documentation requirements.