Everything about minimum down payments in Canada. 5% vs 10% vs 20%. CMHC insurance costs. How to save faster using FHSA and RRSP HBP.
The minimum down payment in Canada depends on the purchase price of the home:
| Purchase Price | Minimum Down | Example |
|---|---|---|
| Under $500,000 | 5% | $400K home = $20K down |
| $500K–$999,999 | 5% + 10% on portion over $500K | $700K home = $45K down |
| $1M–$1.49M | 20% | $1.2M home = $240K down |
| $1.5M+ | 20% | No CMHC available |
Any down payment under 20% requires CMHC mortgage default insurance. The premium is added to your mortgage — you don't pay it upfront.
Contribute up to $8,000/year. Tax deductible going in, tax-free coming out. Best savings vehicle ever created for Canadian first-time buyers. Open one immediately — even if you're years from buying.
Already have RRSP savings? Withdraw up to $60,000 per person ($120,000 per couple) tax-free for your down payment. Repay over 15 years.
Contributions aren't tax-deductible but withdrawals are tax-free. Good for short-term down payment savings (1–3 years away from buying).
The CMHC premium on a $500K home with 5% down is $19,000 added to your mortgage. At 4.89%, you'll pay approximately $28,500 in interest on that premium over 25 years. Saving to 10% or 20% saves significant money long-term — but getting into the market sooner can offset this through appreciation.