Getting an accepted offer is thrilling — but it’s not the finish line just yet. Understanding down payments and minimum requirements in Canada is a key part of ensuring your purchase closes smoothly and legally. Between signing the agreement and holding your keys, there are critical steps that determine how much you’ll need upfront and how your financing will be structured.
At Sunlite Mortgage, we guide you through every stage, from confirming financing to final inspection — making the path from offer to ownership stress-free.
The Canadian minimum down payment depends on your home’s purchase price:
- Up to $500,000: 5% minimum
- $500,000 to $999,999: 5% on the first $500,000 + 10% on the rest
- $1 million or more: 20% minimum (no CMHC-insured mortgages)
These rules apply nationwide, though certain lenders and programs may offer flexibility for well-qualified borrowers.
Mortgage default insurance (often called CMHC insurance) protects the lender if a borrower defaults on their mortgage. It’s required when the down payment is less than 20%.
While the premium is added to your mortgage, it allows Canadians to buy homes sooner — often with smaller savings.
Your down payment can come from:
- Personal savings or investments
- RRSP withdrawals (via the Home Buyers’ Plan, up to $60,000 per buyer)
- Gifts from immediate family
- Proceeds from selling another property
Tip: Keep documentation for every source. Lenders are required by law to verify where your funds originated.
A couple in Hamilton saved $65,000 for a $550,000 home – enough for a 12% down payment. Because they exceeded the minimum, they reduced their CMHC premium by 40% and saved nearly $10,000 over their first five years.
A strong down payment builds confidence and flexibility. Whether you’re starting small or investing big, understanding your options today puts you one step closer to your next set of keys.
