Minimum down payment in Canada (2026): the rules
By Thomas Lymburner, residential real estate broker, RE/MAX Direct
Key facts
- Price of $500,000 or less: 5% of the price.
- Between $500,000 and $1.5 million: 5% of the first $500,000, plus 10% of the portion above $500,000.
- $1.5 million or more: 20% of the price.
- Source: Financial Consumer Agency of Canada, page consulted October 19, 2026, page last modified 2025-10-15.
Minimum down payment examples
Amounts calculated with the rules above.
| Purchase price | Minimum down payment |
|---|---|
| $400,000 | $20,000 |
| $500,000 | $25,000 |
| $750,000 | $50,000 ($25,000 + $25,000) |
| $1,000,000 | $75,000 ($25,000 + $50,000) |
| $1,500,000 | $300,000 |
Less than 20%: mortgage loan insurance
If the down payment is less than 20% of the price, you usually have to buy mortgage loan insurance. The premium is generally added to the loan.
Some lenders may require it even with 20%, often for self-employed borrowers or weaker credit files.
Insurable price ceilings and conditions are set by insurers and federal regulation and have changed before: confirm them with your lender or mortgage broker before making an offer.
Where can the down payment come from?
The down payment can come from your savings, the FHSA, the Home Buyers’ Plan (HBP) or a gift from a family member.
Don’t forget the other costs
Also plan for the welcome tax, the notary and the inspection.
Frequently asked questions
$20,000, or 5% of the price, since the price is $500,000 or less.
Between $500,000 and $1.5 million, the rule is 5% of the first $500,000, plus 10% of the portion above $500,000. For example, for $750,000: $25,000 + $25,000 = $50,000.
No, except at $1.5 million or more. Below 20% of the price, you usually have to buy mortgage loan insurance, and some lenders may require it even with 20%.
No. It is generally added to the loan; the exact amount depends on the lender.
Sources
- Financial Consumer Agency of Canada — Down payment — Page consulted October 19, 2026; page last modified 2025-10-15.
General information only, not financial or legal advice.
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Let’s discuss your plans in Gatineau
To discuss your plans, contact Thomas Lymburner, real estate broker, RE/MAX Direct, OACIQ licence J6215.
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