What is the minimum down payment required to buy a home?

In Canada, the minimum down payment is 5% on the first $500,000 and 10% on the remaining $500,000 up to a maximum $1,000,000 purchase price. With that, you must also be able to show you can cover the potential closing costs such as appraisals, legal fees, discharges, title insurance, and where applicable, survey certificates.

A minimum of 5% of your down payment must be from your own personal savings. Alternatively, you may receive that minimum 5% down payment from other sources such as a gift from a family member. With all gifts from family members, lenders will typically require a signed gift letter. With newcomers to Canada or non-residents, lenders will usually want to see a minimum down payment of 10%. Lastly, a 20% minimum down payment will be required on any rental property.

It’s important to also note that any mortgages with less than a 20% down payment will require mortgage loan insurance, issued by either CMHC, Sagen, or Canada Guaranty.