How Much Down Payment Do You Need in Ontario?
HOMEH Publishing Department
Author Mar 04, 2023 5 min read
The down payment is the biggest cash hurdle for most Ontario buyers — but you may need less than you think. The minimum starts at just 5% on homes under $500,000, then scales up with price. This guide explains exactly how much you'll need in 2026, when mortgage insurance applies, and how to get there faster.
Key takeaways- The minimum down payment is 5% under $500,000, then 10% on the portion above $500,000.
- Homes priced at $1.5M or more require at least 20% down because they can't be insured.
- Less than 20% down means CMHC mortgage insurance — a premium of 2.80%–4.00% added to your mortgage.
- First-time buyers can fund their down payment with the FHSA and RRSP Home Buyers' Plan.
- HOMEH's Cashback Rebate, the industry's highest, can effectively boost your down payment.
The minimum down payment rules
In Canada, the minimum down payment depends on the purchase price and is set on a sliding scale. The higher the price, the larger the minimum percentage on the upper portion.
| Purchase price | Minimum down payment | Example minimum |
|---|---|---|
| Under $500,000 | 5% | $400,000 → $20,000 |
| $500,000 – $1,499,999 | 5% on first $500k + 10% above | $700,000 → $45,000 |
| $1,500,000 or more | 20% (cannot be insured) | $1,500,000 → $300,000 |
How the tiered calculation works
For homes between $500,000 and $1,499,999, the minimum is split: 5% on the first $500,000, plus 10% on every dollar above that. Take a $700,000 home — you'd need 5% of $500,000 ($25,000) plus 10% of the remaining $200,000 ($20,000), for a total minimum of $45,000.
Want your exact figure? The down payment calculator does the tiered math for you in seconds.
When you'll pay mortgage insurance
If you put down less than 20%, your mortgage must be insured against default — usually through CMHC. The premium is a percentage of your mortgage amount and is added to your loan (so you pay it off over time). In Ontario, the 8% PST on the premium is due at closing.
| Down payment | Premium (% of mortgage) |
|---|---|
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% or more | No insurance required |
A bigger down payment means a smaller premium — and at 20% it disappears entirely. Learn more in our guide to CMHC mortgage insurance.
How to fund your down payment faster
First-time buyers have powerful, tax-advantaged tools to build a down payment more quickly:
- FHSA — up to $8,000/year and $40,000 lifetime, with tax-deductible contributions and tax-free withdrawals. See the FHSA guide.
- RRSP Home Buyers' Plan — borrow up to $60,000 from your RRSP tax-free, repaid over 15 years. See the Home Buyers' Plan guide.
- A bigger budget — every extra dollar down lowers your insurance premium and monthly payment.
For the full buyer journey, start with our first-time home buyer guide for Ontario and the roundup of first-time home buyer programs in Canada.
Boost your down payment with HOMEH
Saving a down payment is hard enough — so it helps when money flows back to you at closing.
Frequently asked questions
What is the minimum down payment in Ontario?
Do I have to put 20% down?
How much down payment do I need for a $700,000 home?
Can I use my RRSP for a down payment?
How does CMHC insurance affect my down payment?
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