{"id":24397,"date":"2024-12-10T08:00:00","date_gmt":"2024-12-10T13:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=24397"},"modified":"2026-01-23T12:20:11","modified_gmt":"2026-01-23T17:20:11","slug":"how-much-is-a-down-payment","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/how-much-is-a-down-payment","title":{"rendered":"How Much Is a Down Payment on a House in Canada?"},"content":{"rendered":"\n\n\n

If you are saving to buy your first home, you may wonder how much to save for a down payment. The amount you need to save depends on many factors, including the current mortgage guidelines, the purchase price, and your mortgage lender’s requirements. <\/p>\n\n\n\n

So, how much is a down payment on a house in Canada? You may have heard you must put 20% down when buying a home. However, that is not necessarily the case. The minimum down payment largely depends on the purchase price of the home. Here’s how you can calculate how much to save for a house.<\/p>\n\n\n\n

What Is a Down Payment?<\/h2>\n\n\n\n

A down payment is the money you pay upfront when you buy a house with a mortgage. Your mortgage lender deducts the down payment from the home’s purchase price.<\/p>\n\n\n\n

Typically, you pay your down payment in cash at closing, in addition to other closing costs<\/a> like land transfer tax, legal fees, and property taxes. <\/p>\n\n\n\n

What Is the Minimum Down Payment for a House?<\/h2>\n\n\n\n

In Canada, the minimum down payment percentage you\u2019ll need depends on the property\u2019s purchase price and the type of home you\u2019re buying.<\/p>\n\n\n\n

If you are buying a primary residence, the minimum down payment changes depending on the purchase price:<\/p>\n\n\n\n

\n \n \n \n \n <\/colgroup>\n \n\n \n\n \n \n \n
Purchase Price<\/th>Minimum down payment required<\/th><\/tr>\n<\/thead>\n
Up to $500,000<\/td>5%<\/td> <\/tr>\n
Between $500,000 and $1,499,999<\/td>5% on the first $500,000 of the purchase price, 10% on the portion of the purchase price above $500,000<\/td> <\/tr>\n
$1,500,000 and up<\/td>20%<\/td> <\/tr>\n <\/tbody>\n <\/table>\n \n \n \n<\/div>\n\n\n\n\n

The size of your down payment directly influences your total mortgage cost. When you put less than 20% down on a home, you will be required to pay mortgage default insurance, <\/strong>also known as CMHC insurance or mortgage loan insurance. This insurance is typically added to your monthly mortgage payments and protects your lender if you default on your payments.<\/p>\n\n\n\n

Related content<\/p>

Down Payment Assistance Programs in Canada<\/a><\/p><\/section>\n\n\n\n

While putting 20% down may be a smart financial decision, saving for a sizeable down payment is difficult for many Canadians. As such, many choose to put 5% down instead; however, this results in paying thousands more over the life of the mortgage.  <\/p>\n\n\n\n

\n \n \n \n \n \n \n <\/colgroup>\n \n\n \n\n \n \n \n \n
Down payment percentage<\/th>Down payment amount<\/th>Mortgage default insurance premium<\/th>Total mortgage amount<\/th><\/tr>\n<\/thead>\n
5%<\/td>$25,000<\/td>$19,000<\/td>$494,000<\/td> <\/tr>\n
10%<\/td>$50,000<\/td>$13,950<\/td>$463,950<\/td> <\/tr>\n
15%<\/td>$75,000<\/td>$11,900<\/td>$436,900<\/td> <\/tr>\n
20%<\/td>$100,000<\/td>N\/A<\/td>$400,000<\/td> <\/tr>\n <\/tbody>\n <\/table>\n \n \n \n<\/div>\n\n\n\n\n

What is Mortgage Loan Insurance?<\/h3>\n\n\n\n

Mortgage loan insurance, which can be purchased from Canada Mortgage and Housing Corporation (CMHC)<\/a>, Sagen<\/a> (previously known as Genworth), or Canada Guaranty<\/a>, protects the mortgage lender in case of default or missed mortgage payments.<\/p>\n\n\n\n

The premiums for this insurance work on a sliding scale, decreasing as you put more of your money in as a down payment percentage. The premiums range from 0.6% to 4.5% of your total mortgage. The homebuyer can add them to their mortgage or pay them in one lump sum.<\/p>\n\n\n\n

Related content<\/p>

CMHC Mortgage Insurance Explained<\/a><\/p><\/section>\n\n\n\n

In addition, home buyers in Ontario, Quebec, and Manitoba will also have to apply provincial sales taxes to the premium. <\/p>\n\n\n\n

On the other hand, there are several benefits to mortgage loan insurance, including:<\/p>\n\n\n\n