By Rafael “Rene” Asprer, REALTOR®. Updated October 20, 2026.The short version
- Minimum down payment: 5% of the first $500,000 of the price, plus 10% of any part from $500,000 to $1,499,999.
- Homes priced at $1.5 million or more need at least 20% down.
- With less than 20% down, the mortgage must be insured. The premium (2.80% to 4.00% of the loan) is added to your mortgage.
- First-time buyers and buyers of newly built homes can get a 30-year amortization on an insured mortgage.
Your down payment is the part of the price you pay yourself; the mortgage covers the rest. In Canada, the minimum depends on the price of the home.
The minimum down payment
| Purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% of the price |
| $500,000 to $1,499,999 | 5% of the first $500,000, plus 10% of the part above $500,000 |
| $1.5 million or more | 20% of the price |
What that looks like at Calgary prices
| Price | Minimum down payment | As a share of the price |
|---|---|---|
| $400,000 | $20,000 | 5% |
| $500,000 | $25,000 | 5% |
| $600,000 | $35,000 | 5.8% |
| $750,000 | $50,000 | 6.7% |
| $1,000,000 | $75,000 | 7.5% |
| $1,500,000 | $300,000 | 20% |
Remember that the down payment isn’t the only cash you need. Budget for closing costs too: in Alberta, roughly 1.5% to 4% of the price.
Mortgage insurance with less than 20% down
If you put down less than 20%, your mortgage must be insured against default by CMHC, Sagen or Canada Guaranty. You pay a one-time premium, which is usually added to the mortgage rather than paid in cash. The insurers’ premiums are the same for the same loan-to-value:
| Down payment | Loan as a share of the price | Premium (share of the loan) |
|---|---|---|
| 5% to 9.99% | 90.01% to 95% | 4.00% |
| 10% to 14.99% | 85.01% to 90% | 3.10% |
| 15% to 19.99% | 80.01% to 85% | 2.80% |
| 20% or more | 80% or less | Not required |
An amortization longer than 25 years adds 0.20% to the premium.
Example. A $500,000 home with 5% down: the down payment is $25,000, the loan is $475,000, and the premium is 4.00% of the loan, or $19,000. Your mortgage starts at $494,000.
Insured mortgages are only available on homes priced under $1.5 million, and at least one borrower generally needs a credit score of 600 or more.
25 or 30 years?
Since December 15, 2024, insured mortgages can be amortized over 30 years when at least one buyer is a first-time buyer or the home is newly built. A longer amortization lowers the monthly payment but means more interest over the life of the mortgage. With 20% or more down, many lenders offer 30 years to any buyer.
Where your down payment can come from
- Your savings. Lenders usually want to see the money in your account for a while, or a clear record of where it came from.
- A First Home Savings Account (FHSA). You can contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible and a qualifying withdrawal to buy your first home is tax-free.
- Your RRSP, through the Home Buyers’ Plan. First-time buyers can withdraw up to $60,000 each and repay it over 15 years. For first withdrawals made from 2022 through 2028, repayments start in the fifth year after the withdrawal.
- A gift from family. A non-repayable gift from a relative can be used, usually with a signed gift letter.
- Savings from abroad. Allowed, as long as the lender can see the money is yours and where it came from. See the newcomers guide.
- The sale of a home you own now, if you’re moving up.
A couple buying together can each use their own FHSA and Home Buyers’ Plan, which can add up quickly.
Next step
Try your numbers in the mortgage calculator, then talk to a mortgage specialist about pre-approval. Rene can connect you with one.
Sources
- Financial Consumer Agency of Canada: Saving for a down payment. Minimum down payment rules
- Department of Finance Canada: mortgage reforms, September 16, 2024. $1.5 million insured price cap and 30-year amortization, effective December 15, 2024
- CMHC: premium information for homeowner loans
- Sagen: premium rates. 0.20% added for amortizations over 25 years
- Canada Revenue Agency: contributing to your FHSA
- Canada Revenue Agency: what is the Home Buyers' Plan
Checked October 20, 2026. Rules change, so confirm the details for your situation with a mortgage specialist or lawyer.