How much down payment do you need?

In Canada, the minimum down payment depends on the price of the home.

• Up to $500,000: 5% of the price.
• From $500,000 to $1.5 million: 5% of the first $500,000 and 10% of the rest.
• $1.5 million and over: 20%.

An example

On a $600,000 home, the minimum is $25,000 on the first $500,000, plus $10,000 on the remaining $100,000. That is $35,000 in all.

Under 20% down

With less than 20% down, the mortgage has to carry default insurance. The premium is 2.8% to 4% of the loan, and it is usually added to the mortgage instead of paid up front.

Where it can come from

Savings, a gift from close family, a First Home Savings Account, or your RRSP through the Home Buyers' Plan are common sources. Lenders usually ask for 90 days of statements that show where the money came from.

Try your own numbers with the calculators.