Planning tool
How much down payment do you need, and when will you have it?
The Canadian minimum is tiered, so it climbs faster than the purchase price does. Enter your target price and what you are putting aside each month to see the minimum required, a realistic timeline, and what going from five per cent to twenty does to your premium and your payment.
Your target and your savings
Enter the price you are aiming at and what you are putting aside each month. The timeline updates as you type.
Include registered savings you intend to withdraw, such as an FHSA or RRSP funds eligible under the Home Buyers' Plan.
Gifted funds from an immediate family member are widely accepted with a signed gift letter.
Use a conservative figure for money you need within a couple of years.
Minimum down payment required
$50,000
6.7% of a $750,000 purchase. You are $10,000 away, and at $1,500 a month that is about 7 months — around March 2027.
Available now
$40,000
Savings plus any expected gift
Still to save
$10,000
To reach the federal minimum
Timeline to the minimum
7 months
Around March 2027
Timeline to 20% down
64 months
20% of $750,000 is $150,000 — no insurance premium at that level
How the federal minimum is calculated
The minimum is tiered, so it steps up as the price crosses each threshold.
- 5% on the first $500,000
- $25,000
- 10% on the portion from $500,000 to $1.5 million
- $25,000
- Minimum required
- $50,000
What each down payment level does to your payment
Monthly principal and interest at 4.79% over 25 years, including any insurance premium added to the loan.
| Down payment | Insurance premium | Mortgage | Payment |
|---|---|---|---|
| 5% · $50,000 (raised to the minimum) | $28,000 | $728,000 | $4,147 |
| 10% · $75,000 | $20,925 | $695,925 | $3,965 |
| 15% · $112,500 | $17,850 | $655,350 | $3,734 |
| 20% · $150,000 | — | $600,000 | $3,418 |
A larger down payment cuts both the mortgage and the insurance premium, which is why the payment drops faster than the down payment rises. Reaching 20% removes the premium and its Ontario sales tax entirely.
Where down payments legitimately come from
Lenders will want to see a 90-day history for the funds.
- · Your own savings in a chequing, savings, TFSA or non-registered investment account.
- · A First Home Savings Account, which is designed for exactly this purpose.
- · RRSP funds withdrawn under the federal Home Buyers' Plan, subject to the program limits and repayment rules.
- · A gift from an immediate family member, documented with a signed gift letter and evidence the funds were transferred.
- · Proceeds from selling an existing property, supported by the sale agreement and a payout statement.
- · Borrowed down payment funds are possible with some lenders, but the payment on that loan counts against your debt ratios.
What this calculation assumes
- · The federal minimum is 5% on the first $500,000, 10% on the portion from $500,000 to $1.5 million, and 20% at $1.5 million and above.
- · Default mortgage insurance is unavailable at a purchase price of $1.5 million or more, so 20% down is mandatory at that level.
- · The savings timeline compounds your assumed return monthly and adds your contribution at the end of each month.
- · Closing costs are additional to the down payment. Lenders generally want to see roughly 1.5% of the purchase price available for them.
- · Registered plan withdrawals have their own limits, timing rules and repayment obligations. Confirm the current program details before relying on them.
- · Comparison payments are principal and interest only, over 25 years, and exclude property tax, heat and condo fees.
Other calculators
Build the savings plan around a real target
Once we know which lenders fit your income and credit profile, the down payment target stops being a guess. Start with a readiness review and work backwards from there.
Understanding the numbers
Down payment questions, answered
What is the minimum down payment in Canada?
Five per cent on the first $500,000 of the purchase price, ten per cent on the portion between $500,000 and $1.5 million, and twenty per cent at $1.5 million and above. On a $750,000 purchase that works out to $50,000 — five per cent of the first half million plus ten per cent of the remaining $250,000. The tiers mean the minimum rises faster than the price does once you cross $500,000.
Why does everything change at $1.5 million?
Default mortgage insurance is not available at a purchase price of $1.5 million or more, and without insurance a lender cannot advance more than eighty per cent of the value. So at that level twenty per cent down is mandatory regardless of how strong your income or credit is. Just below the threshold, a ten per cent down payment on the upper portion is possible. It is a genuine cliff edge and worth knowing about if you are shopping near it.
Is it worth stretching to twenty per cent?
It removes the insurance premium and the Ontario sales tax on that premium, and it lowers the payment. Against that, it usually means waiting longer, and in a rising market waiting has a cost too. There is no universal answer — it depends on how fast you are saving, what rents are costing you meanwhile, and whether the premium meaningfully changes what you can carry. It is a good thing to model properly rather than assume.
Can my down payment be a gift?
Yes. Gifted funds from an immediate family member are widely accepted. The lender will want a signed gift letter confirming the money is a gift rather than a loan, and evidence that the funds were actually transferred into your account before closing. Gifts from more distant relatives or from friends are treated differently and depend on lender policy.
What counts as an acceptable source of down payment?
Your own savings, investments, a First Home Savings Account, RRSP funds withdrawn under the federal Home Buyers’ Plan, proceeds from selling a property, and gifts from immediate family. Lenders will ask for roughly ninety days of history on the funds. Borrowed down payments exist as a niche option with some lenders, but the payment on the borrowed money counts against your debt ratios, which usually offsets the benefit.
Do I need closing costs on top of the down payment?
Yes, and lenders generally want to see roughly one and a half per cent of the purchase price available for them in addition to your down payment. Land transfer tax alone is usually larger than most buyers expect, and it cannot be added to the mortgage. Build closing costs into your savings target from the start rather than treating them as an afterthought.
The trade-off nobody models
Waiting for twenty per cent is not free.
The standard advice is to save twenty per cent and avoid the insurance premium. Sometimes that is right. But the premium is a known, financeable, one-time cost, while the years spent saving carry rent, market movement and the ordinary risk that life intervenes. Those are harder to quantify and easier to ignore.
The honest answer depends on your numbers: how fast you can actually save, what you are paying to live meanwhile, and whether the payment at five per cent down is one you could carry comfortably. That is a conversation, not a rule of thumb.
Getting the funds ready properly
Consolidate early
Money moved between accounts in the final weeks creates paperwork. Getting your down payment into one account well ahead of an offer makes verification straightforward.
Keep the ninety-day trail intact
Lenders ask for ninety days of statements. Unexplained deposits need an explanation, so keep documentation for anything unusual.
Document a gift before it arrives
A signed gift letter and a clean transfer record. Cash deposits are the hardest form of gift to verify and are best avoided.
Understand registered plan timing
FHSA and Home Buyers’ Plan withdrawals have their own rules and processing times. Start the withdrawal before you need the funds, not when you need them.
Budget closing costs separately
They are additional to the down payment, they are paid in cash, and land transfer tax is usually the largest piece.
Next step
Set the savings target against a real qualification.
Once we know what your income and credit profile actually support, the down payment target stops being a guess and becomes a plan with a date on it.
A real person reviews your scenario. This platform does not issue automated approvals, and no financing outcome is guaranteed.