20% down on a $1,000,000 house = $200,000. For million-dollar homes, 20% is the minimum requirement.
Important: 20% is the Minimum
For homes priced over $1,000,000:
- Minimum down payment: 20%
- CMHC mortgage insurance is not available
- You cannot buy with 5-15% down
| Down Payment % | Amount | Mortgage |
|---|---|---|
| 20% (minimum) | $200,000 | $800,000 |
| 25% | $250,000 | $750,000 |
| 30% | $300,000 | $700,000 |
| 35% | $350,000 | $650,000 |
Total Cash Needed at Closing
| Expense | Amount |
|---|---|
| Down payment (20%) | $200,000 |
| Land transfer tax (Ontario) | $16,475 |
| Legal fees | $2,500 |
| Home inspection | $700 |
| Title insurance | $700 |
| Moving costs | $5,000 |
| Total cash needed | $225,375 |
Land Transfer Tax by Province
On a $1,000,000 home:
| Province | Land Transfer Tax |
|---|---|
| Ontario | $16,475 |
| BC | $26,000 |
| Quebec | $14,500 |
| Alberta | $0 |
| Toronto (additional) | +$16,475 |
In Toronto: Total = $32,950 before rebates. First-time buyers get minimal relief at this price.
Monthly Payment Breakdown
At 5.5% interest, 25-year amortization:
| Down Payment | Mortgage | Monthly Payment | Total Interest |
|---|---|---|---|
| 20% | $800,000 | $4,888 | $666,400 |
| 25% | $750,000 | $4,582 | $624,600 |
| 30% | $700,000 | $4,277 | $583,100 |
Income Required
To qualify for an $800,000 mortgage (minimum 20% down):
- Monthly payment (5.5%): $4,888
- Property tax + heat: $1,050
- Total housing: $5,938
- Required income (GDS 32%): ~$222,675/year
Stress test qualification at 7.5% requires qualifying income of ~$270,000.
The Reality of Million-Dollar Homes
| City | What $1M Buys |
|---|---|
| Toronto | 2-3BR condo or semi |
| Vancouver | Condo or small townhouse |
| Calgary | Premium detached home |
| Ottawa | Very nice detached home |
| Montreal | Excellent detached home |
Saving $200,000 Timeline
| Household Savings | Time to Save |
|---|---|
| $3,000/month | 5.6 years |
| $4,000/month | 4.2 years |
| $5,000/month | 3.3 years |
| $6,000/month | 2.8 years |
| $8,000/month | 2.1 years |
Most buyers of $1M+ homes either:
- Sell existing property
- Have family assistance
- Have exceptionally high savings rates
