How Much Down Payment Do You Need in Canada?

By Jay Patel, REALTOR® · RE/MAX Complete Realty · Reviewed October 11, 2026

How does the minimum down payment work?

The purchase-price bands matter. A price above $500,000 does not mean you calculate 10% on the entire amount. For an eligible purchase below the insured-price limit, calculate the first portion separately, then add the amount for the balance. Confirm the current rule and the property's eligibility before writing an offer.

These rules were checked against the Financial Consumer Agency of Canada on October 11, 2026. They are financing requirements, not a statement about what you personally qualify to borrow. Your credit, income, debts, property and source of funds can affect the lender's decision.

What would that mean for a $600,000 purchase?

Illustrative calculation, not a market price: 5% of the first $500,000 is $25,000, and 10% of the remaining $100,000 is $10,000. The combined minimum is $35,000 for an eligible purchase under the rules checked October 11, 2026. Closing costs and a cash reserve are additional.

Do not treat that figure as a recommended personal budget. A smaller mortgage, a larger reserve or a different purchase timeline may fit your household better. Start with the amount you can comfortably commit, rather than assuming the minimum is automatically the right choice.

Does mortgage insurance change the amount I borrow?

With less than 20% down, mortgage default insurance is typically required for an eligible purchase. It protects the lender, not the buyer's household. If its premium is added to the mortgage, the financed balance becomes larger than the purchase price minus the down payment. Ask your lender for the applicable premium and complete payment breakdown.

Use the mortgage and amortization calculator to compare scenarios. Its results are estimates, not a lender commitment. Verify the insurance assumptions, amortization eligibility, rate and financing terms with your mortgage professional before relying on the result.

Should I put down more than the minimum?

There is no single answer for every buyer. A larger down payment reduces the amount borrowed, but using all your available cash can leave little flexibility for moving, repairs or other priorities. Compare the complete financing estimate and your remaining cash position before making a choice.

Write down what your household needs to keep accessible after closing. Include ordinary bills during the move and items you already know the property needs. Seek qualified financial advice when comparing mortgage debt with investments or other financial commitments; an online calculator cannot decide those trade-offs for you.

What cash should I plan for besides the down payment?

Ask your lawyer and lender for a property-specific closing estimate. Legal work, registration charges, adjustments, inspection or document-review costs, moving and other purchase expenses can be separate from the down payment. New construction can raise additional tax and contract questions. Avoid assuming one generic closing-cost percentage covers every transaction.

Keep the offer deposit on your cash-flow checklist too. Ask how it is applied at closing, when it is due and what the agreement says about its handling. Have unfamiliar contract terms explained before signing; a deposit and a down payment are related to the purchase but are not interchangeable deadlines.

How can Calgary and Edmonton buyers use this information?

Choose an initial search budget only after discussing financing and ongoing ownership costs. Browse Calgary homes or Edmonton homes, then compare individual properties consistently. A lower advertised price can still come with substantial condo fees, maintenance needs or other costs.

The Alberta Home Buyer's Guide explains the wider purchase process. If you are deciding whether to buy yet, explore the Rent vs Buy Calculator. Review the Buyer FAQ for related questions before your next conversation.

Questions to take to your mortgage professional

• Is this property and purchase eligible for the financing I am considering?
• What documentation is required for my down-payment source?
• What premium and fees apply, and which are paid upfront or financed?
• How do different down payments affect my mortgage and remaining cash?
• What could change between pre-approval and final approval?

Source and review date

Financing rules checked October 11, 2026: Financial Consumer Agency of Canada: How much you need for a down payment. Rules and eligibility can change. General educational information, not individualized mortgage, legal, tax or investment advice.