Down Payment Guide — Canada 2025

Minimum Down Payment Canada 2025

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Rules, acceptable sources, CMHC implications, and strategies to save your down payment faster. Everything Canadian homebuyers need to know about down payments in 2025.

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Minimum Down Payment Requirements

2025 Update: The maximum purchase price for an insured mortgage (with less than 200% down) was raised to $1.5 million in late 2024, 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 $700K
Under $500,0005% of purchase priceYes (4.00% premium)N/A
$500,000–$999,9995% on first $500K + 100% on remainderYes5% × $500K + 100% × $200K = $45,000
$1,000,000–$1,499,9995% on first $500K + 100% on $500K–$1.5MYes (as of late 2024)N/A
$1,500,000+200% of full purchase priceNoN/A
Any price with 200%+200% (conventional mortgage)No$140,000 on $700K

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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

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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 $800,000 home?
For an $800,000 home: minimum down payment is 5% × $500,000 ($25,000) + 100% × $300,000 ($30,000) = $55,000 minimum. CMHC insurance would add approximately $23,375 to your mortgage (premium rate on the insured amount). To avoid CMHC, you'd need 200% = $160,000. Many buyers target somewhere between — $80,000–$120,000 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.