For homes priced at $500,000 or less, the minimum down payment is 5%:
This threshold is designed to make homeownership more accessible to first-time buyers. For example, a $400,000 home requires a minimum down payment of $20,000. However, buyers should be prepared for additional closing costs, as the 5% only covers the mortgage qualification, not the full amount needed to close the deal.

For homes priced between $500,001 and $999,999, the down payment is tiered:
You must contribute 5% on the first $500,000 and 10% on the remaining amount. If you’re buying a $700,000 home, the required minimum would be $45,000. This structure ensures that buyers taking on larger mortgages contribute more equity, reducing risk to lenders and insurers.

Homes priced at $1 million or more require at least 20% down—and are not insurable:
Once the purchase price hits seven figures, CMHC and other insurers step back. This means you must go conventional, which changes the underwriting approach and can affect the types of lenders you qualify with. For example, a $1.1M home requires at least $220,000 upfront, not including closing costs.

Any down payment below 20% triggers mandatory default insurance:
The cost of mortgage insurance is added to your loan and varies between 2.8% to 4% of the mortgage amount, depending on how close you are to the 5% minimum. While it enables buyers to enter the market sooner, it also increases the size of the loan being repaid. Understanding how this premium is calculated—and its impact on your monthly payment—is critical for accurate budgeting.

Gifted funds and RRSP withdrawals can be used toward the down payment if properly documented:
Many first-time buyers receive help from family in the form of a gifted down payment. These funds must be non-repayable and supported by a signed gift letter. RRSP withdrawals under the Home Buyers’ Plan are another powerful tool, but timing and eligibility are essential to make them work seamlessly.