The minimums explained
In Canada, the minimum down payment is 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more require at least 20% down.
On a $700,000 home, that means 5% on the first $500,000 ($25,000) plus 10% on the next $200,000 ($20,000) — a minimum of $45,000.
The 20% threshold and CMHC
Put down less than 20% and your mortgage must be insured, usually through CMHC. The premium is added to your mortgage balance and ranges roughly from 2.8% to 4.0% of the loan depending on your down payment size.
The trade-off: a smaller down payment gets you into the market sooner but adds insurance cost and interest. A 20% down payment avoids the premium entirely — and unlocks longer amortizations in some cases.
Where to find the money
First-time buyers have powerful tools to build a down payment faster, and combining them can add up quickly.
The bottom line
There is no single right answer. If waiting to reach 20% means years more renting, a smaller insured down payment may be worth it. If you are close, pushing to 20% saves the premium and lowers your long-run cost. Model both before you decide.
