In short
In Canada the minimum is 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million. At $1.5 million and up, it's 20%.
Under 20% down you'll need mortgage default insurance, but you don't need 20% to get started.
How much you need in Canada
Canada sets a minimum down payment for every home purchase, and the amount depends on the price. The rules are federal, so they are the same in Ottawa as anywhere else in the country.
On a home of $500,000 or less, the minimum is 5% of the price. Between $500,000 and $1.5 million, you need 5% of the first $500,000 plus 10% of everything above $500,000.
At $1.5 million or more, the minimum is 20%. That ceiling rose from $1 million to $1.5 million on December 15, 2024, which opened low down payment options to more buyers in higher price ranges.
What changes when you put down less than 20%
With less than 20% down, your mortgage must carry mortgage default insurance, often called CMHC insurance. The premium is a percentage of the loan, and it gets smaller as your down payment gets bigger.
A bigger down payment also means a smaller mortgage, lower monthly payments and less interest over the life of the loan. Reaching 20% removes the insurance requirement entirely, but many buyers decide it's worth starting sooner with less.
Your lender also tests whether you can afford the payments at a higher qualifying rate, so the down payment is only one part of the approval. Getting pre-approved early shows you what price range your savings and income support together.
Where the money can come from
Most buyers use savings, and many add money from registered accounts such as an RRSP through the Home Buyers' Plan or a First Home Savings Account. Gifts from close family are also common, though lenders usually want a signed gift letter and proof the funds are in your account.
Lenders review where your down payment came from, usually by checking several months of account history. Keep records of large deposits so you can explain them.
Don't forget the deposit and closing costs
The deposit you hand over with an accepted offer is normally credited toward your down payment on closing. Closing costs, such as land transfer tax and legal fees, are separate and come on top of the down payment, so budget for both.
Common questions about down payment
What is the minimum down payment in Canada in 2026?
It's 5% on the first $500,000 of the price, 10% on the portion from $500,000 to $1.5 million, and 20% if the home costs $1.5 million or more. These federal rules have applied since December 15, 2024, when the insured mortgage price cap rose to $1.5 million. Your lender may ask for more depending on your situation.
Do I need 20% down to buy a house in Ontario?
No, you can buy with as little as 5% down on a home priced at $500,000 or less. With under 20% down, your mortgage needs default insurance, and the premium is usually added to your loan. Putting down 20% or more avoids that insurance cost.
How much down payment do I need for a $650,000 home?
The minimum is $40,000. That's 5% of the first $500,000, which is $25,000, plus 10% of the remaining $150,000, which is $15,000. You'll also need separate funds for closing costs such as land transfer tax and legal fees. Expect your lender to check that both amounts are in place before final approval.
Can my down payment be a gift from family?
Yes, most lenders accept a gift from an immediate family member as all or part of your down payment. They usually require a signed gift letter confirming it doesn't have to be repaid, plus proof the money is in your account before closing. Ask your lender about its exact rules.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.