20% Down Payment on a $400,000 House in Canada (2026)
By Wealthvieu
·
Updated
20% down on a $400,000 house = $80,000. Here’s the complete breakdown.
Down Payment Breakdown
| Down Payment % |
Amount |
Mortgage |
CMHC Insurance |
| 5% (minimum) |
$20,000 |
$380,000 |
$15,200 |
| 10% |
$40,000 |
$360,000 |
$11,160 |
| 15% |
$60,000 |
$340,000 |
$9,520 |
| 20% |
$80,000 |
$320,000 |
$0 |
| 25% |
$100,000 |
$300,000 |
$0 |
Total Cash Needed at Closing
| Expense |
Amount |
| Down payment (20%) |
$80,000 |
| Land transfer tax (Ontario) |
$4,475 |
| Legal fees |
$1,500 |
| Home inspection |
$500 |
| Title insurance |
$400 |
| Moving costs |
$2,000 |
| Total cash needed |
$88,875 |
Land Transfer Tax by Province
On a $400,000 home:
| Province |
Land Transfer Tax |
First-Time Rebate |
| Ontario |
$4,475 |
Up to $4,000 |
| BC |
$6,000 |
Exempt (up to $500K) |
| Quebec |
$4,500 |
None |
| Alberta |
$0 |
N/A |
| Manitoba |
$4,200 |
None |
| Toronto (additional) |
+$4,475 |
Up to $4,475 |
Monthly Payment Comparison
At 5.5% interest, 25-year amortization:
| Down Payment |
Mortgage |
Monthly Payment |
Total Interest |
| 5% |
$395,200* |
$2,443 |
$337,700 |
| 10% |
$371,160* |
$2,294 |
$317,060 |
| 20% |
$320,000 |
$1,955 |
$266,500 |
20% down saves you about $488/month compared to 5% down.
How Long to Save $80,000?
| Monthly Savings |
Time to Save |
| $1,000 |
6.7 years |
| $1,500 |
4.4 years |
| $2,000 |
3.3 years |
| $2,500 |
2.7 years |
| $3,000 |
2.2 years |
FHSA + RRSP Strategy
- FHSA: $8,000/year × 4 years = $32,000 (tax-deductible, tax-free withdrawal)
- RRSP Home Buyer’s Plan: Up to $35,000 (tax-free withdrawal, must repay)
- Combined: Up to $67,000 from tax-advantaged accounts
