Published 12 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
The minimum down payment in Canada is not one number. It is a sliding scale with two break points, and one of those break points moved recently enough that a good deal of what you will read online — including, as of writing, one line on a federal government page — is out of date.
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The scale
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $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 purchase price |
What that means in real GTA numbers
| Price | Minimum down payment | How it is calculated |
|---|---|---|
| $450,000 | $22,500 | 5% of $450,000 |
| $500,000 | $25,000 | 5% of $500,000 |
| $700,000 | $45,000 | $25,000 + 10% of $200,000 |
| $900,000 | $65,000 | $25,000 + 10% of $400,000 |
| $1,100,000 | $85,000 | $25,000 + 10% of $600,000 |
| $1,499,000 | $124,900 | $25,000 + 10% of $999,000 |
| $1,500,000 | $300,000 | 20% of $1,500,000 |
Look at those last two rows. A thousand dollars of purchase price changes the down payment requirement by $175,100.
That cliff is the most consequential thing on this page. If you are negotiating anywhere near $1.5 million and your down payment is under 20%, the difference between $1,499,000 and $1,500,000 is not a rounding error — it is whether the deal is financeable at all. I have seen buyers discover this at the worst possible moment.
The change that caught everybody out
Mortgage loan insurance — which is what allows a down payment below 20% — used to be unavailable at purchase prices of $1 million or more.
As of December 15, 2024, the insured mortgage cap rose from $1 million to $1.5 million. The same announcement extended amortization periods to 30 years for first-time home buyers and for buyers of new builds.
This genuinely widened the market for anyone buying between $1 million and $1.5 million with less than 20% down, which in the GTA is a very large number of households.
Be careful what you read on this. At the time of writing, the federal Financial Consumer Agency’s own down payment page shows the correct 5%/10% scale running up to $1.5 million, and then further down the same page still states that insurance is unavailable at $1 million or more. Those two statements cannot both be right. The Department of Finance’s announcement of the December 15, 2024 change is the reliable one.
Where the money has to come from
The minimum down payment normally has to come from your own funds.
Lenders also apply their own standards on top of the minimums above — a larger down payment may be required if you are self-employed or if your credit history is weak. The published minimum is the floor set by the rules, not a promise from any particular lender.
Two programs are worth understanding, because together they are how most first-time buyers in this market actually assemble a down payment:
- The First Home Savings Account. $8,000 of participation room per year, to a $40,000 lifetime maximum, with unused room carrying forward. You must be an adult resident of Canada and a first-time buyer — which here means you have not lived in a home you owned, or co-owned, in the past four years, and do not live in a home your spouse or common-law partner owns.
- The Home Buyers’ Plan. Each person can withdraw up to $60,000 from their RRSPs tax-free, repaid to the RRSP over 15 years. Missed repayments can trigger additional tax.
These can be combined, and for a couple the combined headroom is substantial. Ask an accountant or a mortgage professional about the order of operations and the repayment mechanics before you withdraw anything.
What the down payment does not cover
A down payment is not your cash requirement. Budget separately for:
- Land transfer tax — and in Toronto, municipal land transfer tax on top of the provincial one, which roughly doubles it. First-time buyer refunds may apply.
- Legal fees and disbursements
- Title insurance
- Home inspection
- Mortgage insurance premium, where you are putting down less than 20% — usually added to the mortgage, but it increases what you owe
- Adjustments on closing — prepaid property taxes, utilities, and on a new build, potentially much more
- Moving, and the first month of everything
A useful rule of thumb in the GTA: have another 3% to 4% of the purchase price available beyond the down payment. On a new build, more.
Is the minimum the right amount?
That is a question about your circumstances, and I am not a mortgage professional or a financial advisor. What I can tell you is the trade-off in plain terms: a smaller down payment means mortgage insurance, a larger balance and more interest paid over the life of the loan. A larger down payment means less flexibility and less cash on hand for the things a house asks for in its first year. Where that balance sits depends on your income stability, your other debt and your appetite for carrying a larger payment.
Talk to a mortgage broker about it before you start shopping, not after you have found a house you want.
Figures, thresholds and program limits change. Confirm current rules with the lender and the CRA, and get advice from a mortgage professional on your own situation.
Sources
- Financial Consumer Agency of Canada — How much you need for a down payment
- Department of Finance Canada — Mortgage reform effective December 15, 2024
- CRA — First Home Savings Account
- CRA — The Home Buyers’ Plan
More from the library
- First-Time Home Buyer Guide to Mississauga (2026): Prices, Cash to Close and Transit
- Is There Any Such Thing as Zero Down in Ontario?
- The Most Affordable Places to Buy a First Home in the GTA (2026)
- Top Realtors in Etobicoke: How to Judge One Properly
- Red Flags When Buying a Restaurant in Toronto: 12 Warning Signs to Check Before You Sign
- Owl House Lane, 390 Wellesley St E: Townhomes Around an 1890s House
