Mortgage Down Payment

This is the amount of money you were saving up, before feeling like you had enough to make the purchase. When you buy a home, your down payment is subtracted from the purchase price, and then you take out a mortgage for the rest (don't forget about closing costs!).

If your down payment is less than 20% of the purchase price, the mortgages must be insured by a third party such as the Canada Mortgage and Housing Corporation (CMHC) and require you to pay an insurance premium. It's a one-time payment which can be paid in cash or added to the mortgage principal so you will not even feel it. You can calculate your premium using the Ontario CMHC insurance calculator.

How to Calculate the Minimum Down Payment for New Insured Mortgage?

Down payment's percent depends on the property price:

Minimum downpayment in Canada

So, for homes under 500K, and 1M or more, the down payment amount is calculated very simply: it's 5% or 20% (accordingly) of the whole price. But if the property price falls between 500K, and 1M, then the down payment consists of two portions which are added to each other, following the formula:

(5% on first 500K) + (10% on the rest)

For example:

Downpayment calculation

Downpayment requirements of the "New To Canada" program


Once you are interested in obtaining a mortgage, then you most likely will also be interested in the help of an experienced real estate agent:

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