Buying a million-dollar home in Canada comes with mortgage rules that are fundamentally different from a standard home purchase. Here is what changes when the price tag hits seven figures — and how to navigate it.
Key rules for $1 million+ purchases
| Rule | Under $1 Million | $1 Million and Above |
|---|---|---|
| Minimum down payment | 5% on first $500K + 10% on amount above $500K | 20% flat |
| Mortgage insurance | Required if under 20% down | Not available — always uninsurable |
| Mortgage category | Insured or insurable | Uninsurable |
| Interest rate | Best rates (insured) or mid-range (insurable) | Highest rates (uninsurable premium) |
| Stress test | Applies | Applies |
| Maximum amortization | 25 years (or 30 for first-time buyers, insured) | 30 years available (uninsured) |
Down payment requirements
| Purchase Price | Minimum Down (20%) | Mortgage Amount | Vs Under-$1M Rules |
|---|---|---|---|
| $1,000,000 | $200,000 | $800,000 | Under $1M: as low as $75,000 (7.5%) |
| $1,250,000 | $250,000 | $1,000,000 | — |
| $1,500,000 | $300,000 | $1,200,000 | — |
| $2,000,000 | $400,000 | $1,600,000 | — |
| $3,000,000 | $600,000 | $2,400,000 | — |
The jump from $999,999 to $1,000,000 is significant: the minimum down payment goes from approximately $75,000 (under the tiered structure) to $200,000.
The $999,999 strategy
Some buyers deliberately purchase just under $1 million to take advantage of the lower down payment requirement:
| Purchase Price | Down Payment Required | Savings vs $1M |
|---|---|---|
| $999,999 | $75,000 (7.5%) + CMHC insurance | Down payment $125,000 less |
| $1,000,000 | $200,000 (20%) | — |
However, the $999,999 buyer pays CMHC insurance (approximately $35,000–$37,000 added to the mortgage), has a larger total mortgage, and a higher monthly payment. Run the numbers for your specific situation.
Income needed for a $1 million+ mortgage
Qualification examples (5-year fixed at 4.39%, qualifying at 6.39%)
| Mortgage Amount | Property Tax (Annual) | Required Income (No Other Debts) | Required Income ($500/mo Car Payment) |
|---|---|---|---|
| $800,000 (from $1M purchase) | $8,000 | ~$195,000 | ~$220,000 |
| $1,000,000 (from $1.25M purchase) | $10,000 | ~$240,000 | ~$270,000 |
| $1,200,000 (from $1.5M purchase) | $12,000 | ~$290,000 | ~$320,000 |
| $1,600,000 (from $2M purchase) | $16,000 | ~$385,000 | ~$415,000 |
These estimates assume a 25-year amortization. A 30-year amortization (available for uninsured mortgages) reduces the income requirement by approximately 8%–10%.
Using a 30-year amortization
Uninsured mortgages can have amortizations up to 30 years (some lenders offer 35), which lowers the monthly payment and helps with qualification:
| Mortgage | 25-Year Payment (4.39%) | 30-Year Payment (4.39%) | Monthly Savings | Income Saved |
|---|---|---|---|---|
| $800,000 | $4,379 | $3,993 | $386 | ~$10,600 less income needed |
| $1,000,000 | $5,474 | $4,991 | $483 | ~$13,300 less income needed |
| $1,200,000 | $6,569 | $5,989 | $580 | ~$15,900 less income needed |
The trade-off: a 30-year amortization costs significantly more in total interest (approximately 20%–25% more over the life of the mortgage).
Rate premium on uninsurable mortgages
| Category | Typical 5-Year Fixed Rate (2026) | Monthly Payment on $1M Mortgage | 5-Year Interest Cost |
|---|---|---|---|
| Insured | 4.04% | $5,249 | $185,316 |
| Insurable | 4.19% | $5,342 | $191,568 |
| Uninsurable ($1M+ home) | 4.39% | $5,474 | $200,013 |
| Difference (insured vs uninsurable) | +0.35% | +$225/month | +$14,697 over 5 years |
Over a 5-year term, the uninsurable rate premium costs approximately $14,700 more than an insured mortgage at the same balance.
Strategies for $1 million+ purchases
Maximize your down payment
| Down Payment Source | Strategy |
|---|---|
| Savings | Maximize TFSA and non-registered savings. Calculate how much more you need |
| FHSA | First Home Savings Account ($40K max). Can be used for any price point |
| RRSP HBP | Home Buyers’ Plan: withdraw up to $60,000 per person ($120,000 per couple) |
| Family gift | Immediate family gift with signed gift letter |
| Existing home equity | If upgrading, your current home equity becomes the down payment |
| Investment liquidation | Sell non-registered investments. Consider tax implications of capital gains |
Reduce your debt ratios
Every dollar of monthly debt reduces your borrowing power:
| Debt Eliminated | Monthly Payment | Approximate Mortgage Qualification Increase |
|---|---|---|
| Car lease/loan | $500 | +$90,000–$110,000 |
| Student loan | $400 | +$72,000–$88,000 |
| Credit card minimums | $300 | +$54,000–$66,000 |
| Line of credit | $200 | +$36,000–$44,000 |
Use rental income to qualify
If the property has a legal secondary suite or you plan to rent a portion:
- Most lenders add 50% to 80% of the expected rental income to your qualifying income
- Requires a market rent appraisal or existing lease agreement
- The property must have a legally conforming rental unit
- Some lenders are more generous than others — a mortgage broker can find the best option
Consider a longer amortization
A 30-year amortization reduces your monthly payment by approximately 7%–9% compared to 25 years, which can be the difference between qualifying and not. You can always make accelerated payments or lump-sum prepayments to pay it off faster.
Lender options for large mortgages
| Lender Category | Maximum Mortgage | Notes |
|---|---|---|
| Big Six banks (standard) | $1.5M–$3M (varies by bank) | Standard underwriting, rate cards apply |
| Big Six banks (private banking) | $3M–$10M+ | High-net-worth division, relationship pricing, more flexible underwriting |
| Monoline lenders | $1M–$2M (varies) | Competitive rates but lower maximum amounts |
| Credit unions | Varies widely | Some have high maximums; may not apply stress test (provincial regulation) |
| B-lenders | $1M–$2M | More flexible qualification, higher rates |
| Private lenders | Based on equity (65%–75% LTV) | No income verification, highest rates and fees |
Private banking advantage
For mortgages above $2 million, the Big Six banks’ private banking or high-net-worth divisions offer:
- Exception pricing — Rates that may be below standard rate cards
- Flexible underwriting — More creative income and asset qualification
- Asset-based lending — Qualification based on investable assets rather than just income
- Higher ratio lending — May allow LTV above 80% for qualifying clients
- Typically requires $500,000 to $1 million+ in investable assets with the bank
Tax considerations
Land transfer tax
Land transfer tax increases significantly on properties over $1 million:
| Province | LTT on $1.5M Property | Additional Taxes |
|---|---|---|
| Ontario | ~$28,475 provincial | +$28,475 Toronto municipal (if in Toronto) = $56,950 total |
| British Columbia | ~$28,000 provincial | +$30,000 additional property transfer tax on properties over $3M |
| Quebec | ~$22,500 | Welcome tax (mutations duty) |
| Alberta | $0 | No provincial land transfer tax |
Foreign buyer taxes
Non-residents purchasing $1 million+ properties face additional taxes:
| Tax | Rate | Where |
|---|---|---|
| Non-Resident Speculation Tax (NRST) | 25% | Ontario (Greater Golden Horseshoe) |
| Additional Property Transfer Tax | 20% | British Columbia |
| Underused Housing Tax (UHT) | 1% annually | National |
The bottom line
Buying a $1 million+ home in Canada requires at least 20% down, an uninsurable mortgage at a rate premium, and significant household income. The key strategies are maximizing your down payment (FHSA + RRSP HBP + savings + gifts), minimizing debts before applying, considering a 30-year amortization to improve qualification, and working with a mortgage broker who can access the best uninsurable rates across multiple lenders.