Minimum down payment in Canada
The federal minimum down payment is 5% on the portion of the price up to $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% above $1,500,000.
How the minimum is calculated
The minimum down payment is tiered, which means a higher-priced home requires a larger percentage on the portion above the threshold.
| Portion of purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% |
| $500,000 to $1,500,000 | 10% |
| Above $1,500,000 | 20% |
Mortgage default insurance
A down payment below 20% requires mortgage default insurance. The premium is typically added to the mortgage balance and increases the amount you borrow.
Amortization
The maximum amortization for an insured mortgage is 25 years.
Source: OSFI — Guideline B-20: Residential Mortgage Underwriting Practices and Procedures — Office of the Superintendent of Financial Institutions. Retrieved 2026-09-16.
Sources
- OSFI — Guideline B-20: Residential Mortgage Underwriting Practices and Procedures — Office of the Superintendent of Financial Institutions
Frequently asked questions
What is the minimum down payment in Canada?
5% on the portion up to $500,000, 10% on the portion from $500,000 to $1,500,000, and 20% above $1,500,000.
What if my down payment is less than 20%?
You will need mortgage default insurance. The premium is usually added to your mortgage balance.
Can I use a gift as a down payment?
Lenders may accept a gifted down payment, but they will usually require a signed gift letter confirming the funds are not a loan. Requirements vary by lender.
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.
If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.