The minimum down payment in Ontario is 5% of the first $500,000 of the price and 10% of the part between $500,000 and $1.5 million, according to the Financial Consumer Agency of Canada. At $1.5 million or more, you need 20%.
| Price | Minimum down | % of price |
|---|---|---|
| $400,000 | $20,000 | 5% |
| $600,000 | $35,000 | 5.8% |
| $750,000 | $50,000 | 6.7% |
| $1,000,000 | $75,000 | 7.5% |
| $1,500,000 | $300,000 | 20% |
Watch the jump at $1.5 million. A home just under it needs about $125,000 down; at $1.5 million the minimum more than doubles to $300,000, because mortgage insurance isn't available at that price.
Minimum down payment needed in Waterloo Region
The table below shows the minimum down payment on the typical home in each Waterloo Region city, using the median price of recent sales.
| City | Detached | Freehold townhouse | Condo apartment |
|---|---|---|---|
| Kitchener | $47,200 on a $722,000 median | $37,800 on a $628,000 median | $16,800 on a $336,000 median |
| Waterloo | $60,000 on a $849,450 median | $41,500 on a $665,000 median | $20,000 on a $400,000 median |
| Cambridge | $46,500 on a $715,000 median | $36,500 on a $615,000 median | $18,500 on a $370,000 median |
| Woolwich | $63,000 on a $880,000 median | $37,100 on a $621,000 median | Too few sales |
| Wilmot | $62,000 on a $870,000 median | Too few sales | Too few sales |
| Wellesley | $67,500 on a $925,000 median | Too few sales | Too few sales |
| North Dumfries | $59,500 on a $845,000 median | Too few sales | Too few sales |
Minimum down payment on the median sold price, by city and property type. Medians cover the 90 days of sales ending October 26, 2026; fewer than 10 sales and we don't show a figure. How we calculate this.
See what you can afford with your own numbers →
5%, 10% or 20%: what changes
With less than 20% down, your mortgage must be insured, by Canada Mortgage and Housing Corporation (CMHC), Sagen or Canada Guaranty. The premium depends on how much you put down, according to CMHC's published rates:
| Down payment | Premium (25-year) | Premium (30-year) |
|---|---|---|
| 5% to 9.99% | 4.00% | 4.20% |
| 10% to 14.99% | 3.10% | 3.30% |
| 15% to 19.99% | 2.80% | 3.00% |
| 20% or more | None | None |
The premium is a percentage of the mortgage, not the price. A 30-year amortization adds 0.20%; since December 15, 2024, first-time buyers and buyers of new builds can choose one on an insured mortgage, according to the Department of Finance Canada.
Here's a $750,000 home at three down payments, on a 25-year amortization:
| Minimum (6.7%) | 10% | 20% | |
|---|---|---|---|
| Down payment | $50,000 | $75,000 | $150,000 |
| Mortgage before insurance | $700,000 | $675,000 | $600,000 |
| Insurance premium | $28,000 (4.00%) | $20,925 (3.10%) | $0 |
| Total mortgage | $728,000 | $695,925 | $600,000 |
| 8% tax on the premium, cash at closing | $2,240 | $1,674 | $0 |
A bigger down payment means a smaller mortgage and a smaller premium. Waiting to save more has its own cost, though: prices and rents keep moving while you save, and nobody knows in which direction. There's no right answer for everyone.
Mortgage insurance and Ontario's tax on it
The mortgage insurance premium isn't paid upfront. It can be added to your mortgage balance, so it's paid off with the mortgage.
Ontario charges 8% retail sales tax on the premium, according to the Ontario Ministry of Finance, and that part can't be added to the mortgage. It's due in cash on closing, and your lawyer collects it with the rest of your closing funds. On the minimum down payment for a $750,000 home, that's $2,240.
Where your down payment can come from
- Savings, in any account.
- A First Home Savings Account (FHSA): up to $40,000, tax-free on a qualifying withdrawal. Read the FHSA guide →
- The Registered Retirement Savings Plan (RRSP) Home Buyers' Plan: up to $60,000 per person, repaid over 15 years. Read the Home Buyers' Plan guide →
- A gift from family. Lenders accept gifts from immediate family with a signed gift letter confirming the money doesn't have to be paid back.
- Money from selling a property, once the sale is firm.
Borrowed down payments, such as a personal loan or line of credit, are treated differently by each mortgage insurer and lender. Some allow them with conditions and some don't, so ask your lender before you count on one.
Proving your down payment
Lenders usually want to see 90 days of history on the accounts holding your down payment. Any large deposit in that time needs an explanation and a paper trail: a gift letter, a sale document, or a transfer from another account you own.
Proving the down payment trips up a lot of buyers. Moving money around just before you apply makes it harder to prove, so get your down payment into one place early and leave it there.
Can you buy with no down payment?
You can't buy with no down payment on a standard insured mortgage. Every insured mortgage in Canada needs at least 5% down, and it has to come from an accepted source.
The real options are the ones above: a gift from family, or the FHSA and Home Buyers' Plan together, which can fund a full down payment on their own.
Be careful with rent-to-own deals. You usually pay above-market rent and agree to a set future price, and if you can't qualify for a mortgage when the term ends, you can lose what you paid extra. Have a lawyer read any rent-to-own agreement before you sign.
You need closing costs too
Lenders typically want to see enough money for closing costs, about 1.5% of the price, on top of your down payment.
For a first-time buyer on a $750,000 home with the minimum down, the cash adds up like this:
| Amount | |
|---|---|
| Down payment | $50,000 |
| 8% tax on the insurance premium | $2,240 |
| Closing costs (about 1.5%) | $11,250 |
| Cash you need | about $63,500 |
Land transfer tax is the biggest closing cost. On $750,000 it's $11,475, or $7,475 after the $4,000 first-time buyer refund. Work out yours with the land transfer tax calculator, and see everything else in the closing costs guide.
Special cases
- A duplex or triplex you'll live in. An owner-occupied home with one or two units follows the same minimums as a house. Three or four units need at least 10% down.
- Rental and investment properties. If you won't live there, mortgage insurance isn't available, so you need at least 20% down.
- Self-employed buyers. If you can show your income with two years of tax returns, the usual rules apply. Without that, insurers and lenders have programs for self-employed buyers, but they often need a bigger down payment, so ask your lender early.
Buying to rent out? See the investor tools for cash flow and cap rates on every listing in the region.