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Mortgage Down Payment Calculator

With the average price of a home in Canada was $703,446 in April 2024. You would need a minimum down payment of $45,345 or 6.45% to purchase the average home.

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Minimum Down Payment

How much down payment for a house in Canada?

It is important to know how much down payment is required for a home in Canada as it is the first hurdle that impacts your maximum home affordability. While other factors such as household income, interest rates and debt levels impact your maximum affordability, you are required to come up with at least the minimum downpayment.

For houses that are $500K or less a minimum down payment of 5% is required on the purchase price of the home. If the price of a home is more than $500K while still less than $1M in addition to the 5% on the first $500K, an additional 10% down payment on the amount of purchase price over $500K is required as a minimum. Lastly if the purchase price of the home is $1M or more a minimum down payment of 20% is required on the full purchase price.

If your minimum down payment is below 20% you will be required to purchase mortgage default insurance. This is an additional cost that can be added onto your mortgage or paid upfront upon closing. You can use our CMCH Mortgage Default Insurance Calculator to determine what the cost of the premium will be and any applicable PST tax.

Canada minimum down payment chart

Purchase Price Minimum Down Payment Required
$500,000 or less 5% of purchase price
more than $500,000 less than $1,000,000 5% of the purchase price for the first $500,000; 10% for the portion above $500,000
more than $1,000,000 20% of the purchase price

Minimum down payment calculation examples

Minimum Mortgage Downpayment Example: For this calculation we will look at the minimum down payment required for a home purchased in Canada with a purchase price from $500K to $1M. To do this we will need to calculate the minimum down payment required level based on the purchase price.

  • Minimum Down Payment on $500K Home

    = $500,000 Purchase Price * 5% Minimum Down Payment Percentage

    = $25,000 Minimum Down Payment

For a home with a purchase price of $500K in Canada you will be required to make a minimum down payment of $25,000. Since the value of this home price is $500K or less, the 5% minimum down payment rate will be applied to the full purchase price.

  • Minimum Down Payment on $750K Home

    = ($500,000 Purchase Price * 5% Minimum Down Payment Percentage) + ($250,000 Purchase Price * 10% Minimum Down Payment Percentage)

    = $50,000 Minimum Down Payment

Since the purchase price of the home is $750K the minimum down payment will be calculated based on two rates. The first rate will be for the portion of the home that is $500K or less at a 5% minimum down payment rate and the second portion is the home that is more than $500K but less than $1M at a 10% rate. The minimum down payment of a home that is $750K in Canada will be $50,000.

  • Minimum Down Payment on $1M Home

    = ($1,000,000 Purchase Price * 20% Minimum Down Payment Percentage)

    = $200,000 Minimum Down Payment

Any home that has a purchase price of $1M or more in Canada will be required to have a minimum down payment of 20% the purchase price. The home in the example above will be required to have a minimum down payment of $200,000.