How Much Down Payment Do You Need to Buy a Home in Ontario?
By Vishvesh Patel, Mortgage Agent · Published October 16, 2026 · 7 min read
The minimum down payment rule
For an insured mortgage in Canada, the minimum down payment works in tiers:
- 5% on the first $500,000 of the purchase price
- 10% on the portion from $500,000 to $1 million
- 20% on homes $1 million and up
These are minimums. A bigger down payment means a smaller mortgage and lower monthly payments.
Worked examples
| Purchase price | Minimum down payment |
|---|---|
| $500,000 | $25,000 (5% of $500,000) |
| $600,000 | $35,000 ($25,000 + 10% of $100,000) |
| $800,000 | $55,000 ($25,000 + 10% of $300,000) |
| $1,200,000 | $240,000 (20% of $1,200,000) |
What a bigger down payment gets you
If you put down 20% or more, you skip mortgage default insurance (the CMHC premium), which lowers your total cost. Below 20%, insurance is required on most mortgages, and the premium gets added to your mortgage. A bigger down payment also means a smaller loan, lower monthly payments, and more lenders willing to approve your file.
Where the down payment can come from
Savings. Your own savings, including from a TFSA or non-registered account.
RRSP, through the Home Buyers' Plan. Eligible first-time buyers can withdraw up to $60,000 from their RRSPs toward a home purchase. It must be repaid over time. Check the current rules before you withdraw, because the details change.
FHSA. The First Home Savings Account is built for exactly this. Eligible buyers can use an FHSA withdrawal together with a Home Buyers' Plan withdrawal for the same home, as long as they meet the rules of both programs.
A gift from immediate family. Most lenders accept a gifted down payment from immediate family, as long as the gift does not need to be repaid. The lender will ask for a signed gift letter confirming that.
Do not forget closing costs
Plan for 1.5% to 4% of the purchase price on top of your down payment. That covers land transfer tax, legal fees, and adjustments. Buyers who budget only for the down payment run out of money at the finish line. Get a written estimate from your lawyer early.
What if you do not have 20%?
Most first-time buyers do not. That is normal. With 5% to 19.99% down, you get an insured mortgage, and plenty of buyers in the GTA buy this way every month. What matters is the full picture: your income, your debts, your down payment, and your payment history. A pre-approval check tells you exactly where you stand before you start shopping.
Want your real number?
Tell me the price range you are looking at and I will work out your minimum down payment, your monthly payment, and your closing costs, in plain English. In most standard mortgages you pay nothing — the lender pays me.
Call (647) 313-9636 Book a callQuick answers
Can I use a gifted down payment in Ontario?
Yes. Most lenders accept a gift from immediate family, as long as it does not need to be repaid. The lender will ask for a signed gift letter confirming that.
Can I use my RRSP for a down payment?
Yes. Under the Home Buyers' Plan, eligible first-time buyers can withdraw up to $60,000 from their RRSPs toward a home purchase. It must be repaid over time.
How much should I budget for closing costs?
Plan for 1.5% to 4% of the purchase price on top of your down payment.
Figures were checked against public lender, CMHC program, and government sources on October 16, 2026. Rules and limits change. Confirm the current numbers before you act. This page is general information, not financial advice. Your rate and approval depend on your file.
Vishvesh Patel is a Mortgage Agent with Centum Financial Services Limited Partnership, licensed by FSRA in Ontario. FSRA licence M26001018, Agent Level 1, status: Authorized to Sell (issued May 28, 2026; expires March 31, 2027). Verify this licence in the FSRA registry. Licensed in Ontario only — helping buyers from across Canada buy in Ontario. Phone: (647) 313-9636 · Email: hello@vishveshpatel.com.