Quick answer: In Canada in 2026, the minimum down payment is 5% of the first $500,000 and 10% of the part between $500,000 and $1,499,999. Homes priced at $1.5 million or more need 20% down. The brackets in the article above are older; insured mortgages now go up to just under $1.5 million, so many BC buyers need less than they think.
A lot of people ask us what is the average down payment on a house? How much do they need to save in order to buy a house? Of course, the answer always varies depending on the house, the market, and the rates. We will try to answer this question for you as precisely as possible but keep in mind, it is not a one-size-fits-all answer.
What is a Down Payment On A House?
Let’s start by giving a quick definition of a down payment before we can jump into the details of a down payment on a house. A down payment is simply the amount of money you have saved and that you will pay to buy the house at the moment of signature. The mortgage on the house will then cover the rest.
For example, if you have saved $30,000 and your house costs $300,000, your $30K will be the down payment and the $270K that is left is going to be covered by the mortgage.
What Is The Minimum Down Payment On A House?
The amount can vary based on the price of the house that you want to purchase. Of course, the minimal down payment on a house will not be the same if the house is worth $200K or if it is worth 1 million dollars. Keep in mind that if you are not able to come up with at least 20% of the price of your new home, you will need to get loan insurance.
What are the different brackets of minimum down payment?
There are three different brackets of minimum down payment in Canada. We will review each of them but if you have any questions, you can always contact Asim Ali and his team of experts.
- $500,000 Or Less
The first one is for any house of $500,000 or less, you will need a minimum down payment of 5% of the asked price. If you can put 20% that would be even better since you can avoid getting loan insurance.
- $500,000 Up To $999,999
This one is a little tricky. You will need to provide 5% of the first $500k ($25,000) and 10% of the rest, up to $999,999. This means that for a house worth $999,999, you would need a minimum of $74,999 for the down payment on the house.
- 1 Million And Up
For houses that are 1 million dollars or more, it is simply 20% of the purchase price that you need for your down payment. For example, if you buy a house worth 1 million dollars, you will need to come up with $200,000 for the down payment.
What Could Make The Minimum Down Payment Go Higher?
These numbers are a minimum guideline for all Canadians but you might have to come up with more than the minimum, but why? If you have a bad credit history or if you are self-employed, the mortgage lenders might require a bigger down payment to protect themselves from liabilities.
Where Do I Get The Money?
The capital for your down payment should come from your personal funds to keep your debt as low as possible. It is possible to borrow from family and friends or from private lenders. The problem with that is that if you have to borrow to get the minimum down payment, you might not be able to afford your house. We recommend playing it safe, waiting, and getting a house you can afford. Of course, we do not know your financial situation, in some cases, it can be a good idea to borrow for the down payment on a house.
How much is the minimum down payment at typical BC prices?
Here are worked examples using the current rules:
| Purchase price | Minimum down payment | How it is calculated |
|---|---|---|
| $500,000 | $25,000 | 5% of $500,000 |
| $800,000 | $55,000 | $25,000 plus 10% of $300,000 |
| $1,200,000 | $95,000 | $25,000 plus 10% of $700,000 |
| $1,500,000 | $300,000 | 20% of the full price |
Under the old rules, a $1,200,000 Surrey townhouse or house needed $240,000 down. Today the minimum is $95,000, as long as the mortgage is insured.
What does mortgage insurance add on top?
With less than 20% down, you pay a CMHC style insurance premium. It is added to the mortgage, not paid in cash. The premiums are:
- 4.00% with 5% to 9.99% down
- 3.10% with 10% to 14.99% down
- 2.80% with 15% to 19.99% down
- Plus 0.20% if you take a 30 year amortization, which is allowed for first time buyers and buyers of newly built homes
Worked example: on an $800,000 home with $55,000 down, the mortgage is $745,000. The premium at 4.00% is $29,800, so the insured mortgage is $774,800. If you are a first time buyer taking 30 years, the premium is 4.20%, or $31,290. To qualify, at least one borrower needs a credit score of 600 or more. See insured vs uninsured mortgages for the full comparison.
Where can the down payment come from in 2026?
Savings are not the only source. I often see buyers combine these:
- FHSA: up to $8,000 a year and $40,000 lifetime per person
- RRSP Home Buyers' Plan: up to $60,000 per person
- A gift from immediate family, with a signed gift letter
- Proceeds from selling another property
A couple who both maxed their FHSA and used the Home Buyers' Plan could bring up to $200,000 from those two accounts alone. Remember to keep money aside for closing costs too. First time buyers in BC can be fully exempt from property transfer tax on the first $500,000 for homes priced up to $835,000.
What should you do next?
Run your numbers in the down payment calculator and the BC closing costs calculator. If you are buying for the first time, the first time homebuyers guide walks through every step. Then book an appointment and I will check which sources fit your plan.