Down Payment
The upfront portion of a home purchase paid from your own funds — minimum 5% on the first $500K, 10% on the portion above (up to $1.5M insured cap).
Your down payment is the portion of the purchase price you pay upfront. In Canada, minimums are tiered: 5% on the first $500,000 and 10% on the portion between $500,000 and $1,500,000. Purchases above $1,500,000 require 20% down (uninsured, no CMHC/Sagen/Canada Guaranty option). Less than 20% down triggers mandatory mortgage insurance (high-ratio/insured mortgage). Down payment sources can include savings, FHSA, RRSP via Home Buyers' Plan, TFSA, gifted funds from immediate family (with a gift letter), and proceeds from selling another property.
Related Terms
A mortgage where CMHC, Sagen, or Canada Guaranty carries the default risk — required when the down payment is less than 20% of the purchase price.
A Canadian tax-advantaged account for first-time home buyers — up to $8,000 in annual contributions ($40,000 lifetime) with tax-deductible deposits and tax-free qualifying withdrawals.
A federal program allowing first-time buyers to withdraw up to $60,000 from their RRSP tax-free toward a home purchase, repayable over 15 years.
Related Guides
- 2026 Insured Mortgage Advantage: 5% Down Payment, Three Insurers & Best Rates Explained
- CMHC-Insured Mortgage Rate Advantages in Canada (2026): Lower Rates, Smaller Down Payments
- Gifted Down Payment Rules in Canada (2026): Complete Compliance Guide for Homebuyers
- How to Finance a Duplex or Triplex in Canada: 2026 Down Payment, Rental Income & CMHC Rules
Related FAQs
- How does mortgage insurance enable lower down payments?
- How do CMHC-insured mortgages benefit you with smaller down payments?
- What documentation is required for a gifted down payment to be compliant?
- How do lenders assess my ability to repay the mortgage with a gifted down payment?
- How does property valuation affect my mortgage approval when using a gifted down payment?