20% down on a $300,000 house = $60,000. Here’s the complete breakdown of what you’ll need.
Down Payment Breakdown
| Down Payment % | Amount | Mortgage | CMHC Insurance |
|---|---|---|---|
| 5% (minimum) | $15,000 | $285,000 | $11,400 |
| 10% | $30,000 | $270,000 | $8,370 |
| 15% | $45,000 | $255,000 | $7,140 |
| 20% | $60,000 | $240,000 | $0 |
| 25% | $75,000 | $225,000 | $0 |
The 20% threshold is important — it’s where you avoid mandatory CMHC mortgage insurance.
Total Cash Needed at Closing
| Expense | Amount |
|---|---|
| Down payment (20%) | $60,000 |
| Land transfer tax (Ontario) | $2,975 |
| Legal fees | $1,500 |
| Home inspection | $500 |
| Title insurance | $350 |
| Moving costs | $1,500 |
| Total cash needed | $66,825 |
Land transfer tax varies by province and city. First-time buyers may get rebates.
Land Transfer Tax by Province
On a $300,000 home:
| Province | Land Transfer Tax | First-Time Rebate |
|---|---|---|
| Ontario | $2,975 | Up to $4,000 |
| BC | $4,000 | Exempt (up to $500K) |
| Quebec | $3,000 | None |
| Alberta | $0 | N/A |
| Manitoba | $2,850 | None |
| Saskatchewan | $0 | N/A |
Monthly Payment Comparison
At 5.5% interest, 25-year amortization:
| Down Payment | Mortgage | Monthly Payment | Total Interest |
|---|---|---|---|
| 5% | $296,400* | $1,832 | $253,200 |
| 10% | $278,370* | $1,721 | $237,930 |
| 20% | $240,000 | $1,467 | $200,100 |
*Includes CMHC insurance added to mortgage.
How Long to Save $60,000?
| Monthly Savings | Time to Save |
|---|---|
| $500 | 10 years |
| $750 | 6.7 years |
| $1,000 | 5 years |
| $1,500 | 3.3 years |
| $2,000 | 2.5 years |
Use FHSA and TFSA to save tax-free!
FHSA for Your Down Payment
The First Home Savings Account (FHSA) allows:
- $8,000 annual contribution (tax-deductible like RRSP)
- $40,000 lifetime maximum
- Tax-free withdrawals for first home purchase
4 years of maxed FHSA = $32,000 + growth toward your down payment.
