How Much Down Payment Do You Need in Canada (2026)?
The real down payment rules in Canada for 2026 — the 5%/10% tiers, the $1.5M insured cap, when CMHC insurance kicks in, and whether gifted down payments are allowed.
The real down payment rules in Canada for 2026 — the 5%/10% tiers, the $1.5M insured cap, when CMHC insurance kicks in, and whether gifted down payments are allowed.
"How much do I need to put down?" is the first question every buyer asks — and the rules are more specific than the "20%" everyone quotes. Here's exactly how Canadian down payment requirements work in 2026, with the numbers that actually apply to your price range.
The short answer
The minimum down payment in Canada is 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million. Homes priced over $1.5 million require 20% down. Anything under 20% requires CMHC mortgage default insurance. So the "20%" rule is really the threshold for avoiding insurance, not the minimum to buy. Estimate your CMHC premium.
The tiers, with examples
- Up to $500,000: 5% minimum. On a $400,000 home that's $20,000.
- $500,000 to $1.5M: 5% on the first $500,000 plus 10% on the rest. On an $800,000 home: $25,000 + $30,000 = $55,000.
- Over $1.5M: 20% minimum, and no mortgage insurance is available. On a $1.6M home that's $320,000.
When CMHC insurance applies
If you put down less than 20% on a home priced up to $1.5M, you'll pay mortgage default insurance (CMHC, Sagen, or Canada Guaranty). The premium is a percentage of the mortgage that rises as your down payment shrinks, and it's usually added to the loan rather than paid upfront. It protects the lender, not you — but it's what makes low-down-payment ownership possible. The trade-off of 20% down is skipping this premium and unlocking more options. Run the numbers with the CMHC calculator and the payment calculator.
Where the money can come from
- Savings, including a tax-smart FHSA or RRSP Home Buyers' Plan.
- A gift from family, which is allowed with a signed gift letter — see gifted down payment.
- Proceeds from selling another property or investments.
Lenders verify the source and want it "seasoned" (in your account for ~90 days) unless it's a documented gift, so plan ahead.
Bigger down payment vs. buying sooner
More down means a smaller mortgage, lower payments, and — at 20% — no insurance premium. But waiting to hit 20% while prices and rent continue isn't always the win it sounds like. For many first-time buyers, getting in with 5–10% (insured) and building equity beats waiting years. A broker can model both paths against your numbers. See the full first-time buyer guide.
Don't forget closing costs
Your down payment isn't the only cash you need. Budget another ~1.5–4% for land transfer tax, legal fees, and adjustments — use the closing costs calculator and, in Ontario, the land transfer tax calculator (first-time buyers get a rebate).
Frequently asked questions
What's the minimum down payment in Canada in 2026?
5% on the first $500,000 of the price, 10% on the portion from $500,000 to $1.5 million, and 20% on homes over $1.5 million. Under 20% requires CMHC insurance.
Do I really need 20% down?
No — 20% is the level that lets you avoid mortgage insurance, not the minimum to buy. You can buy with as little as 5% down on a home up to $500,000.
Can my down payment be a gift?
Yes. A gift from an immediate family member is acceptable with a signed gift letter confirming it isn't a loan. See gifted down payment options.
Is mortgage insurance available over $1.5 million?
No. Homes priced above $1.5 million can't be insured, so they require at least 20% down.
Working out your down payment? Talk to us — we'll confirm your minimum, factor in CMHC and closing costs, and tell you the true cash you need to buy.
Mortgage content produced by Mortgage Squad Advisors' team of FSRA-licensed mortgage advisors and reviewed under the supervision of the brokerage's Principal Broker (FSRA Brokerage #13737) before publication.