Canadian Down Payment Calculator

Calculate the minimum down payment using Canada's tiered rules. Includes CMHC insurance premium, first-time buyer programs (FHSA, HBP, HBTC), and a savings timeline. All figures in CAD.

$
$15.0%
%
Minimum Down Payment
CA$45,000
6.4% of CA$700,000 purchase price
Your Down Payment
CA$105,000 (15.0%)
CMHC Premium
CA$16,660
Total Mortgage
CA$611,660
Monthly Payment
CA$3,589/mo
Closing Costs (est.)
CA$10,500
Total Cash Needed
CA$115,500

Canada uses a tiered minimum down payment system unique among G7 countries. The tier changes at $500K, $1M, and $1.5M.

Home PriceMin DownDown %CMHC PremiumInsurance
CA$400,000CA$20,0005.0%CA$15,200CMHC required
CA$600,000CA$35,0005.8%CA$22,600CMHC required
CA$800,000CA$55,0006.9%CA$29,800CMHC required
CA$1,000,000CA$75,0007.5%CA$37,000CMHC required
CA$1,200,000CA$95,0007.9%CA$44,200CMHC required
CA$1,500,000CA$125,0008.3%CA$55,000CMHC required
CA$2,000,000CA$400,00020.0%NoneNot required
The rule in plain language:
  • Under $500K: 5% minimum on entire purchase price
  • $500K–$999,999: 5% on first $500K ($25,000) + 10% on the portion above $500K
  • $1M–$1.5M: Same as above — 5% on first $500K + 10% on remainder (10% on $500K-$1M portion + 10% on $1M-$1.5M portion)
  • $1.5M+: 20% on the full purchase price — CMHC insurance not available

Comparing total cost over the amortization period at each down payment level for a CA$700,000 home at 5.1%.

5% Down (CA$35,000)
CA$4,058/mo
CMHC: CA$26,600
Total interest: CA$525,766
Amortization: 25 years
10% Down (CA$70,000)
CA$3,811/mo
CMHC: CA$19,530
Total interest: CA$493,784
Amortization: 25 years
15% Down (CA$105,000)
CA$3,589/mo
CMHC: CA$16,660
Total interest: CA$464,994
Amortization: 25 years
20% Down (CA$140,000)
CA$3,019/mo
CMHC: None
Total interest: CA$526,777
Amortization: 30 years
Which is optimal? The 20% down avoids CMHC entirely and allows 30-year amortization for lower payments. However, saving from 5% to 20% on a CA$700,000 home means saving an additional CA$105,000 — which takes time. The CMHC premium at 5% down is CA$26,600, but getting into the market sooner can offset this through property appreciation.

How to Use This Canadian Down Payment Calculator

Enter the purchase price of the home you want to buy. The calculator automatically applies Canada's tiered minimum down payment rules and shows the required CMHC insurance premium if your down payment is under 20%. You can also enter your available savings to see how close you are and how long it will take to reach your goal.

Canada's Tiered Down Payment Rules

These rules apply to purchases from federally regulated lenders. The First Home Savings Account (FHSA) and RRSP Home Buyers Plan (HBP) can both be used to fund any portion of the down payment.

The Formula

For homes under $500,000:
Minimum Down = Purchase Price × 5%

For homes $500,000 to $1,499,999:
Minimum Down = $25,000 + (Purchase Price − $500,000) × 10%

CMHC Premium Rates:
5.00–9.99% down → 4.00% of loan
10.00–14.99% down → 3.10% of loan
15.00–19.99% down → 2.80% of loan
20.00%+ down → No CMHC premium

The CMHC premium is added to your mortgage balance, not paid upfront. It is also subject to provincial sales tax in Ontario (8% PST), Quebec (9% QST), and Saskatchewan (6% PST) — payable at closing, not added to the mortgage.

Example

Priya Buying Her First Home in Ottawa

Priya is buying a $750,000 home in Ottawa. She has $60,000 in her FHSA and $25,000 in her RRSP (eligible for HBP), giving her $85,000 available for the down payment.

Purchase Price$750,000
5% on first $500,000$25,000
10% on remaining $250,000$25,000
Minimum Down Payment$50,000 (6.67%)
Priya's Down Payment$85,000 (11.33%)
Mortgage Amount$665,000
CMHC Premium (3.10%)$20,615
Total Mortgage with CMHC$685,615
PST on CMHC (Ontario exempt)$0

Frequently Asked Questions

Canada uses a tiered system. For homes up to $500,000, the minimum is 5%. For homes between $500,000 and $1,499,999, it is 5% on the first $500,000 plus 10% on the amount above $500,000. For homes priced at $1,500,000 or more, a full 20% down payment is required and CMHC mortgage insurance is not available. The tiered rules were updated in December 2024 to raise the upper limit from $999,999 to $1,499,999.
CMHC (Canada Mortgage and Housing Corporation) mortgage insurance is required when your down payment is less than 20% of the purchase price. The premium is added to your mortgage rather than paid upfront. Rates are 4.00% of the loan for a 5 to 9.99% down payment, 3.10% for 10 to 14.99%, and 2.80% for 15 to 19.99%. Sagen and Canada Guaranty offer the same products as alternatives to CMHC.
Yes, through the Home Buyers Plan (HBP). First-time buyers can withdraw up to $60,000 from their RRSP tax-free. Couples can each withdraw $60,000 for a combined maximum of $120,000. The funds must be repaid to the RRSP over 15 years, starting two years after the year of withdrawal. RRSP funds must have been on deposit for at least 90 days before withdrawal.
The FHSA is a registered account that combines RRSP tax deductions with TFSA-style tax-free withdrawals. You can contribute up to $8,000 per year with a lifetime limit of $40,000. Contributions are tax-deductible, and qualifying withdrawals to purchase a first home are completely tax-free. The FHSA can be used alongside the RRSP Home Buyers Plan — together they allow a potential $100,000 per person in tax-advantaged first home savings.
Yes, gifted down payments are accepted for CMHC-insured mortgages when the gift comes from an immediate family member — a parent, grandparent, sibling, or spouse. A signed gift letter is required stating the amount, relationship, and that no repayment is expected. Lenders also typically require three months of bank statements from the donor as proof of funds. Gifted amounts from non-family sources may require additional documentation.

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