How much do I need for a down payment in Canada?

In Canada, you need at least 5% down on the first $500,000 of the purchase price, and 10% on the portion above $500,000 up to $999,999. Homes priced at $1 million or more require a minimum 20% down payment.

What is the stress test for Canadian mortgages?

The mortgage stress test requires borrowers to qualify at either the Bank of Canada's benchmark rate (currently 5.25%) or their contract rate plus 2%, whichever is higher. This applies to all insured and uninsured mortgages from federally regulated lenders.

What is the First Home Savings Account (FHSA)?

The FHSA is a registered savings plan that lets first-time home buyers save up to $40,000 tax-free for a down payment. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free (like a TFSA).

How does land transfer tax work in Canada?

Land transfer tax is a one-time tax paid when purchasing property. Rates vary by province—Ontario and BC use tiered brackets, Alberta has no land transfer tax (only a flat registration fee), and Toronto has an additional municipal land transfer tax on top of Ontario's.

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Mortgages – Calculators, Rates & Home Buying (Canada)

Mortgages – Calculators, Rates & Home Buying (Canada)

Updated March 2026

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