Published 13 August 2026 · Updated 5 October 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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The minimum down payment in Ontario is 5% of the first $500,000 of the purchase price, plus 10% of the portion between $500,000 and $1.5 million. At $1.5 million and above, you need at least 20% down. On an $800,000 home, the minimum works out to $55,000.
What is the minimum down payment in Ontario in 2026?
The minimum is tiered: 5% of the first $500,000 of the purchase price, 10% of the portion from $500,000 up to $1.5 million, and a flat 20% once the price reaches $1.5 million or more. These are federal rules, so they apply identically in Etobicoke, Mississauga, Barrie and everywhere else in Canada — the Financial Consumer Agency of Canada (FCAC) publishes them on its down payment page.
The $1.5 million figure is newer than many people realize. According to the Department of Finance, the price cap for insured mortgages was raised from $1 million to $1.5 million effective December 15, 2024. Before that date, any purchase at $1 million or more required 20% down, full stop. Now the 20% wall doesn’t hit until $1.5 million — which matters enormously in Toronto, where a large share of freehold houses sit between $1 million and $1.5 million.
One more piece of context: if you put down less than 20%, your mortgage must be insured against default (through CMHC or a private insurer), and you pay the premium for that insurance. I cover the cost below, because it changes the real math of a small down payment.
How do I calculate my minimum down payment?
Take 5% of the first $500,000, then add 10% of everything above $500,000 up to your purchase price. Here is the arithmetic at common GTA price points, laid out so you can check every line:
| Purchase price | 5% of first $500,000 | 10% of portion above $500,000 | Minimum down payment | As % of price |
|---|---|---|---|---|
| $500,000 | $25,000 | $0 | $25,000 | 5.0% |
| $650,000 | $25,000 | $15,000 | $40,000 | 6.2% |
| $800,000 | $25,000 | $30,000 | $55,000 | 6.9% |
| $1,000,000 | $25,000 | $50,000 | $75,000 | 7.5% |
| $1,200,000 | $25,000 | $70,000 | $95,000 | 7.9% |
| $1,400,000 | $25,000 | $90,000 | $115,000 | 8.2% |
| $1,500,000 and up | Tiers no longer apply — 20% required | $300,000 at $1.5M | 20% | |
A concrete Etobicoke example: on a $650,000 condo in Humber Bay Shores, the minimum down payment is $25,000 + $15,000 = $40,000, about 6.2% of the price. On an $800,000 semi near The Queensway, it is $25,000 + $30,000 = $55,000.
Want these numbers run for a specific property?
Send me the address or the price range and I will put together the full cost picture — land transfer tax, closing costs, rebates you qualify for — on one page.
Call or text 833-330-1925 Email me your numbers
Jatin Dua, Broker of Record — RE/MAX Quantum Realty Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with another brokerage.
What happens at the $1.5 million mark?
At exactly $1.5 million, the minimum down payment jumps from roughly $125,000 to $300,000 — because insured financing is no longer available and 20% becomes mandatory. Just below the line, at $1,499,999, the tiered minimum is about $125,000 (5% of $500,000 plus 10% of $999,999). One dollar higher, and the requirement is $300,000.
How much does mortgage default insurance cost?
The premium depends on your loan-to-value ratio (LTV) — the mortgage amount as a percentage of the price — and at the minimum down payment it is 4.00% of the loan. CMHC publishes the full premium schedule:
| Loan-to-value ratio | Premium (% of loan amount) |
|---|---|
| Up to 65% | 0.60% |
| 65.01% – 75% | 1.70% |
| 75.01% – 80% | 2.40% |
| 80.01% – 85% | 2.80% |
| 85.01% – 90% | 3.10% |
| 90.01% – 95% | 4.00% (4.50% if the down payment is non-traditional, e.g. borrowed) |
Worked example on that $800,000 purchase with the minimum $55,000 down: the mortgage is $745,000, which is 93.1% of the price, so the premium is 4.00% × $745,000 = $29,800. The premium is normally added to the mortgage rather than paid in cash, taking the total loan to $774,800.
Can I get a 30-year amortization with less than 20% down?
Yes, if you are a first-time buyer or buying a new build. According to the Department of Finance, 30-year amortizations on insured mortgages became available to all first-time buyers and all buyers of new construction effective December 15, 2024 — the same reform package that raised the insured price cap to $1.5 million. Previously, insured mortgages were capped at 25 years. The longer amortization lowers the monthly payment (and can help with qualifying), at the cost of paying interest for longer.
Where can the down payment money come from?
Most buyers I work with assemble it from savings, and two registered programs do the heavy lifting. According to the CRA, the First Home Savings Account (FHSA) lets you contribute $8,000 per year to a $40,000 lifetime maximum, with unused room carrying forward up to $8,000 — so a maximum of $16,000 of room in a single year. The Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 from your RRSP, repayable over 15 years. Gifted funds from family are also common and count as a traditional down payment source; borrowed down payments trigger the higher 4.50% insurance premium in the table above. I walk through all the programs in the first-time buyer programs guide.
The takeaway
Minimum down payment in Ontario: 5% to $500,000, 10% on the slice from $500,000 to $1.5 million, 20% from $1.5 million up. On an $800,000 home that is $55,000 — but with the 4% insurance premium and Ontario’s 8% tax on it, the true cost of buying with the minimum is higher than the headline number. Know all three figures before you set your budget.
How I help
Before a client of mine offers on anything, I run this exact math — minimum down payment, insurance premium, the 8% RST, land transfer tax — against the specific price we are about to bid. It takes ten minutes and it has stopped more than one buyer from offering $20,000 past a line that would have cost them six figures in extra cash. If you want that sheet for a property you are watching, send me the listing.
Want the real cash-to-close number for a listing?
Email me the listing and your rough down payment, and I’ll send back the minimum-down math, the insurance premium and the full cash required to close — specific to that property. No pitch, no obligation.
[email protected] · 833-330-1925 · Book a free consultation
Confidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
Can I buy a house in Ontario with 5% down?
Only if the price is $500,000 or less — 5% applies just to the first $500,000. Above that, you add 10% of the portion between $500,000 and $1.5 million, so the effective minimum percentage rises with the price: about 6.9% on an $800,000 home, for example.
What is the minimum down payment on a $1 million home in Ontario?
$75,000 — 5% of the first $500,000 ($25,000) plus 10% of the remaining $500,000 ($50,000). This has been possible only since December 15, 2024, when the insured mortgage price cap rose from $1 million to $1.5 million; before that, $1 million purchases required 20% down.
Do I have to pay CMHC insurance if I put down less than 20%?
Yes. Mortgages with less than 20% down must be insured against default, and the buyer pays the premium — from 2.40% to 4.00% of the loan at down payments below 20% (4.50% for non-traditional, e.g. borrowed, down payments). The premium is usually added to the mortgage, but Ontario’s 8% retail sales tax on it must be paid in cash at closing.
Why does everything change at $1.5 million?
Because $1.5 million is the maximum price for an insured mortgage, effective December 15, 2024. At or above that price you cannot buy with mortgage default insurance, so a 20% down payment is mandatory — $300,000 on a $1.5 million purchase, versus roughly $125,000 just below the line.
Want these numbers run for a specific property?
Send me the address or the price range and I will put together the full cost picture — land transfer tax, closing costs, rebates you qualify for — on one page.
Call or text 833-330-1925 Email me your numbers
Jatin Dua, Broker of Record — RE/MAX Quantum Realty Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with another brokerage.
Sources
- FCAC — How much you need for a down payment. The 5% / 10% / 20% tier rules. Accessed 13 August 2026.
- Department of Finance Canada — mortgage reform announcement. The $1 million → $1.5 million insured cap increase and 30-year insured amortizations for first-time and new-build buyers, both effective 15 December 2024. Accessed 13 August 2026.
- CMHC — mortgage loan insurance cost. The premium schedule by loan-to-value ratio and the note that provincial sales tax on the premium cannot be added to the loan. Accessed 13 August 2026.
- Government of Ontario — Retail sales tax. Ontario’s 8% RST on insurance premiums. Accessed 13 August 2026.
- CRA — Contributing to your FHSA. The $8,000 annual and $40,000 lifetime limits and carry-forward rule. Accessed 13 August 2026.
- CRA — The Home Buyers’ Plan. The $60,000 withdrawal limit and 15-year repayment. Accessed 13 August 2026.
Related reading
- What $500K, $700K and $900K Buy a First-Time Buyer in the GTA (2026)
- Down Payment Assistance in the GTA (2026): What Is Actually Open to First-Time Buyers
- Co-Signer or Guarantor on Your First Mortgage in Ontario: What It Changes
- How Much Income Do You Need to Buy a Home in the GTA? 2026 City-by-City Table
- Rent-to-Own in Ontario: How It Works, Real Costs and the Risks
- Gifted Down Payment Ontario: Gift Letter Rules and What Lenders Need (2026)
- RRSP Home Buyers’ Plan 2026: $60,000 Limit and New Repayment Timeline
- FHSA 2026: Limits, Carry-Forward and How Toronto Buyers Use It
- Land transfer tax in Toronto: 2026 rates, rebates and worked examples
- First-time home buyer programs in Ontario (2026): what actually exists
- The mortgage stress test in 2026: how qualifying actually works
- Etobicoke community guide
- Humber Bay Shores condo buildings guide
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty in Etobicoke, Toronto, working with buyers, sellers and investors across the GTA. I write these guides myself and verify every figure against the primary government source before publishing — the same sources are linked above so you can check them too.
Reach me at [email protected] or 833-330-1925.
Newcomers have an extra layer to clear: the newcomer guide to buying in the GTA.