Minimum down payment planning
Minimum down payment is a starting line—not the whole plan.
“Can I buy with 5% down?” is a very reasonable question. The better follow-up is: “What would the whole purchase look like once we include the mortgage, insurance, closing costs, and the life I still want after I move in?”
The context
Know the general Canadian minimums
Current federal consumer guidance generally describes a minimum down payment of 5% for homes priced at $500,000 or less. For homes priced from $500,000 to $1.5 million, it generally describes 5% of the first $500,000 plus 10% of the portion above $500,000. For homes priced at $1.5 million or more, it generally describes 20%.
These are general consumer thresholds, not a mortgage approval promise. Requirements can change and lender, insurer, property, source-of-funds, credit, and borrower circumstances still matter.
Less than 20% can change the structure
With less than 20% down, mortgage loan insurance is typically required if the mortgage otherwise qualifies. Mortgage loan insurance protects the lender, not the borrower, and its cost can affect the total mortgage amount and payment.
A larger down payment can reduce what you borrow, but it is not always wise to put every available dollar into the purchase and leave nothing for closing costs or emergencies.
The source of the down payment matters
Savings, the sale of a property, and some gifts may be reviewed differently from borrowed funds or other sources. Lenders and insurers may have their own documentation and source-of-funds requirements.
Bring the paper trail early. It is much easier to explain your plan before an offer deadline than after one.
Do not forget closing costs
The down payment is not the only cash required to complete a purchase. Legal costs, inspections, appraisals when needed, property tax adjustments, moving, insurance, and other costs deserve room in the plan.
Use the percentage as a question, not a finish line
We can compare different purchase prices, down payment amounts, possible insurance costs, payments, and remaining cash reserves. The aim is not to chase the smallest possible percentage; it is to understand whether the full plan makes sense.
This information is general educational guidance only and may change. Minimum down payment, mortgage insurance, property-price, source-of-funds, residency, lender, and approval requirements must be confirmed for your individual transaction.
Choose the next step
The right next move should match your situation.
Whether you are actively making a decision or planning ahead, choose the conversation that fits the timing and complexity of your mortgage question.
When this may be relevant
- You have savings but are unsure whether you need 5%, 10%, 20%, or more.
- You want to compare the purchase price, payment, insurance, and cash-reserve impact of different down payment amounts.
- You are planning a gift, savings withdrawal, or another source of funds and want to understand what should be reviewed.
A conversation can help clarify
- General minimum-down-payment thresholds and the factors that can change an individual application.
- How mortgage loan insurance and closing costs can affect the whole purchase budget.
- Why proof and source of funds should be discussed before you rely on a percentage.
Frequently asked questions
The questions behind the plan.
These answers are general education to help frame a more useful strategy conversation. Your property, timing, and application details will always matter.
Your private inquiry
Begin with the details you are comfortable sharing.
There is no obligation created by sending an inquiry. It is simply a concise way to help Harpreet prepare for a more useful conversation.