Down Payment Calculator Canada 2026: How Much Do You Need?
Updated
Canada’s down payment rules are more nuanced than most buyers realize. The minimum isn’t a flat 5% — it’s 5% on the first $500,000 and 10% on the portion between $500,001 and $999,999. Once you hit $1 million, the minimum jumps to 20%. On top of the down payment, any purchase with less than 20% down requires CMHC mortgage insurance, which adds 2.8–4.0% to your mortgage balance. That insurance protects the lender, not you, but it’s what makes low-down-payment homeownership possible in Canada. The tables below calculate exactly what you need for every price point.
Minimum Down Payment Requirements
Purchase Price
Minimum Down Payment
$500,000 or less
5% of purchase price
$500,001 - $999,999
5% on first $500K + 10% on remainder
$1,000,000+
20% minimum
Down Payment Calculator
Example Calculations
Home Price
Calculation
Minimum Down Payment
$400,000
$400,000 × 5%
$20,000
$500,000
$500,000 × 5%
$25,000
$600,000
($500K × 5%) + ($100K × 10%)
$35,000
$750,000
($500K × 5%) + ($250K × 10%)
$50,000
$900,000
($500K × 5%) + ($400K × 10%)
$65,000
$1,000,000
$1,000,000 × 20%
$200,000
$1,200,000
$1,200,000 × 20%
$240,000
CMHC Insurance Costs
CMHC mortgage insurance is the hidden cost that catches first-time buyers off guard. With 5% down on a $500,000 home, the insurance premium is $19,000 — added directly to your mortgage, meaning you’re actually borrowing $494,000 on a $475,000 mortgage. Each 5% increment in down payment reduces the premium rate: from 4.0% at 5% down to 3.1% at 10% to 2.8% at 15%. At 20% down, insurance isn’t required at all. Whether it makes sense to save longer for a larger down payment depends on how fast prices are rising in your market — in hot markets, the appreciation you miss while saving can exceed the insurance cost.
Insurance Rates by Down Payment
Down Payment
Insurance Rate
On $500K Mortgage
5%
4.00%
$20,000
10%
3.10%
$15,500
15%
2.80%
$14,000
20%+
0% (not required)
$0
Total Mortgage with Insurance
Home Price
Down Payment
Mortgage
CMHC Insurance
Total Mortgage
$500,000
5% ($25,000)
$475,000
$19,000 (4%)
$494,000
$500,000
10% ($50,000)
$450,000
$13,950 (3.1%)
$463,950
$500,000
15% ($75,000)
$425,000
$11,900 (2.8%)
$436,900
$500,000
20% ($100,000)
$400,000
$0
$400,000
Down Payment Impact on Monthly Payments
$500,000 Home at 5.5% Rate (25-Year)
Down Payment
Amount
Mortgage
Monthly Payment
Total Interest
5%
$25,000
$494,000
$3,044
~$419,000
10%
$50,000
$463,950
$2,859
~$394,000
15%
$75,000
$436,900
$2,693
~$371,000
20%
$100,000
$400,000
$2,465
~$340,000
5% vs 20% down: ~$579/month difference, ~$79,000 less interest.
Don’t let the down payment stop you from buying if you’re otherwise ready. Five percent down plus CMHC insurance gets you into the market; combine an FHSA and Home Buyers’ Plan to maximize your down payment tax-efficiently. If you can save 20%, you’ll avoid insurance and lower your payments significantly — but waiting years to save more isn’t always worth it in a rising market.