Minimum down payment in Canada, and how it changes your rate
In Canada the minimum down payment is 5% of the first $500,000 of the price plus 10% of the rest, for homes under $1.5 million; at $1.5 million or more it is 20%. Under 20% down your mortgage must be insured, which usually means a lower rate but a premium of up to 4.00% of the loan.
The minimum by price
| Price | Minimum down | % of price |
|---|---|---|
| $400,000 | $20,000 | 5.0% |
| $600,000 | $35,000 | 5.8% |
| $800,000 | $55,000 | 6.9% |
| $1,000,000 | $75,000 | 7.5% |
| $1,400,000 | $115,000 | 8.2% |
| $1,600,000 | $320,000 | 20.0% |
How down payment sets your rate
Under 20% down, the mortgage is insured and lenders price it as low-risk. On Nov 2, 2026 the lowest 5-year fixed we collected was 4.34% insured vs 4.59% with 20%+ down. With 20% or more you avoid the premium but may pay a higher rate. See insured vs uninsured rates.
Premium vs rate: a worked example
| Down payment | Mortgage | Rate | Monthly | Interest, 5 yrs |
|---|---|---|---|---|
| Minimum ($35,000), insured, 4.00% premium added | $587,600 | 4.34% | $3,200.15 | $118,924 |
| 20% ($120,000), uninsured | $480,000 | 4.59% | $2,680.74 | $102,892 |
| Price | $700,000 |
|---|---|
| 5% of the first $500,000 | $25,000 |
| 10% of the $200,000 above | $20,000 |
| Minimum down payment | $45,0006.4% of the price |
Where the money can come from
Savings, a gift from family (with a gift letter), the sale of a home, the RRSP Home Buyers' Plan (up to $60,000 per person) and the First Home Savings Account. CMHC requires at least one borrower to have a credit score of 600 or more for an insured mortgage.
Source: Canada Revenue Agency, What is the Home Buyers' Plan, effective February 17, 2026. Checked .What this means for you
- Saving: the minimum on a $700,000 home is $45,000; budget closing costs on top.
- Close to 20%: compare both rate tiers before you stretch to 20%; the insured rate can be lower.
- Above $1.5 million: 20% is required and the mortgage can't be insured.
Frequently asked questions
What is the minimum down payment on a $700,000 house?
$45,000: 5% of $500,000 ($25,000) plus 10% of the $200,000 above it ($20,000).
Do I need 20% down?
Only for homes priced at $1.5 million or more, or if you want to avoid mortgage default insurance. Under 20% down the mortgage must be insured.
Primary sources
- CMHC — Mortgage loan insurance: Purchase (minimum down payment, credit score, price cap). Checked .
- Department of Finance Canada — Mortgage reforms in force: $1.5M insured cap, 30-year amortizations (effective December 15, 2024). Checked .
- Canada Revenue Agency — What is the Home Buyers' Plan (effective February 17, 2026). Checked .