How Much Down Payment Do You Need to Buy a Home in Canada (2026)?

Q: How much do I need for a down payment?

In Canada, the minimum down payment is tiered by price: - 5% on the first $500,000 of the purchase price - 10% on the portion between $500,000 and $1,500,000 - 20% on homes priced $1,500,000 or more (these can't be insured)

TrueNorthCalc Team
Jul 7
4 min read

"How much do I need for a down payment?" is usually the first question a first-time buyer asks, and in Canada the answer isn't a single percentage. It depends on the price of the home, whether you're a first-time buyer, and whether you're willing to insure your mortgage. Here's the plain-English breakdown of the 2026 rules, including a couple of changes that work in buyers' favour this year.

The 30-second answer

In Canada, the minimum down payment is tiered by price:

5% on the first $500,000 of the purchase price
10% on the portion between $500,000 and $1,500,000
20% on homes priced $1,500,000 or more (these can't be insured)

So a $500,000 home needs $25,000 down; a $700,000 home needs $45,000 (5% of $500k plus 10% of $200k). Put down less than 20% and you'll carry CMHC mortgage insurance, which is normal and lets you buy sooner.

The minimum down payment rules, with the math

The tiered rule catches a lot of buyers off guard, so here's exactly how it works on a home over $500,000. Take an $800,000 home:

5% of the first $500,000 = $25,000
10% of the next $300,000 = $30,000
Minimum down payment = $55,000 (about 6.9% of the price)

The higher the price climbs toward $1.5M, the more that 10% tier pushes your effective percentage up.

The $1.5M insured cap and 30-year amortizations (2026)

Two rule changes that took effect at the end of 2024 still shape 2026 and help buyers:

The insured-mortgage cap rose from $1 million to $1.5 million. That means homes priced up to $1.5M can be purchased with less than 20% down (with insurance), a big deal in expensive markets.
30-year amortizations became available for first-time buyers and for anyone buying a newly built home, up from the standard 25-year maximum. A longer amortization lowers your monthly payment (though it increases total interest over time).

If you're buying a resale home and aren't a first-time buyer, you're generally still on the 25-year cap.

What CMHC insurance means when you put down less than 20%

If your down payment is under 20%, you're required to carry mortgage default insurance, most often through CMHC. It protects the lender if you default, and the premium is a percentage of your mortgage that gets larger the smaller your down payment is. The premium is usually added to your mortgage balance rather than paid upfront. This isn't a penalty, it's what allows Canadians to buy with as little as 5% down. Our CMHC insurance guide breaks down the exact premium rates.

20% down: when it makes sense

Reaching a 20% down payment removes the CMHC insurance requirement, which lowers your total borrowing cost. It also reduces your monthly payment and can strengthen your offer. But saving to 20% takes longer, and for many buyers the cost of waiting (rising prices, rent paid in the meantime) outweighs the insurance premium. There's no universally right answer, it depends on your market and timeline.

New for 2026: the First-Time Home Buyers' GST rebate

A fresh incentive landed in 2026: the First-Time Home Buyers' GST/HST rebate received Royal Assent on March 12, 2026, offering eligible first-time buyers of newly built homes up to $50,000 back. If you're considering a new build, this can meaningfully offset your costs; check the current eligibility rules with the CRA, as they apply to specific price ranges and buyer criteria.

Where the down payment can come from

Your down payment doesn't have to be pure savings:

The FHSA lets you save up to $40,000 tax-free specifically for a first home.
The RRSP Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP tax-free (repaid over 15 years).
A gift from an immediate family member is allowed by most lenders with a signed gift letter.

Used together, the FHSA and HBP can fund a large share of your down payment, see our guide on using the FHSA and Home Buyers' Plan together.

A worked example

Say you're a first-time buyer purchasing a $650,000 resale home:

Minimum down: 5% of $500,000 ($25,000) plus 10% of $150,000 ($15,000) = $40,000
Because it's under 20%, you'll carry CMHC insurance, added to your mortgage.
As a first-time buyer you could choose a 30-year amortization to lower the monthly payment.

Enter these numbers in our free home affordability calculator to see the price you'd actually qualify for once the stress test and your income are factored in.

Bottom line

For 2026, plan on a minimum of 5% on the first $500,000 and 10% up to $1.5M, with 20% required at $1.5M and above. Under 20% means CMHC insurance, which is normal and lets you buy sooner. First-time buyers and new-build purchasers get extra flexibility this year: a $1.5M insured cap, 30-year amortizations, and a new GST rebate of up to $50,000 on new builds. Figure out your realistic price first, then work backward to the down payment you'll need.

This article is general information, not financial advice. Down payment rules, insurance premiums, and incentive programs can change and have eligibility conditions; confirm the current details with the CRA, CMHC, or a mortgage professional before acting.