Down Payment in Canada: How Much You Need for a House

Last updated: August 26, 2026

---

The minimum down payment in Canada starts at just 5% — but the exact number depends on the purchase price, and the math changes at two specific thresholds. A condo at Edmonton’s average price of $214,521 needs about $10,700 down, while a $750,000 detached home requires $50,000. Here are the 2026 rules, real numbers at eight different prices, what lenders expect you to earn, and the federal programs that can cut your cash requirement significantly.

---

Minimum Down Payment in Canada: The Three Tiers

Canadian minimum down payments are set federally and follow three tiers based on purchase price. If your down payment is less than 20%, you must also buy mortgage loan insurance — premiums run from 0.6% to 4.5% of your mortgage amount, provided by CMHC, Sagen, or Canada Guaranty.

Two recent changes reshaped these rules. On December 15, 2024, the federal government raised the insured-mortgage price cap from $1 million to $1.5 million, which means homes between $1 million and $1.5 million can now be bought with less than 20% down — something that was impossible before. And the same reform expanded 30-year insured amortizations to all first-time buyers and all buyers of newly built homes.

Minimums are the same across provinces — the federal tiers apply in Ontario, Alberta, and everywhere else in Canada. What differs by province is everything layered on top, like land transfer taxes.

Key takeaways:

• Three tiers: 5% up to $500K, 5% + 10% from $500K–$1.5M, flat 20% at $1.5M+
• Under 20% down means mandatory mortgage loan insurance (CMHC, Sagen, or Canada Guaranty)
• The $1.5M insured cap (effective December 15, 2024) lets buyers put less than 20% down on homes between $1M and $1.5M

---

What You’d Need at Different Purchase Prices

Here is the minimum down payment calculated at eight real-world price points, alongside what a conventional 20% buyer would put down:

The formula is easier than it looks. For a $600,000 home: 5% of $500,000 is $25,000, plus 10% of the remaining $100,000 is $10,000 — so $35,000 gets you in the door. Note the cliff effect at $1.5 million: a $1,499,999 home needs $125,000 down, while a $1,500,000 home needs $300,000.

Key takeaways:

• Every dollar of price below $500K costs only 5 cents in down payment
• Between $500K and $1.5M, each extra dollar of price costs 10 cents
• Crossing $1.5M triples the minimum instantly — from 8.3% effective to 20%

---

What a Down Payment Looks Like in Edmonton

Edmonton is one of the most affordable major markets in Canada, and the down payment math shows it. Based on REALTORS Association of Edmonton data for July 2026, here’s what minimum down payments look like across the city’s four property types:

To make it concrete: a first-time buyer targeting a townhouse at around $300,000 needs about $15,000 minimum down — and with the programs covered below, a realistic combination of FHSA savings and RRSP funds can cover it entirely. Our First Home Guide walks through the full buying path step by step. Compare that to Toronto or Vancouver, where the average detached price alone pushes buyers past the $1.5M insured threshold.

Two more Alberta advantages matter for your total cash needs:

• No land transfer tax. Alberta charges none — unlike Ontario, BC, or Toronto, where transfer taxes add tens of thousands in closing cash. Buyers here pay only modest title-registration fees.
• Lower ongoing carrying costs. Budget for property tax too — a typical $492,500 Edmonton home pays roughly $426/month in property taxes in Edmonton, which lenders count when qualifying you.

Key takeaways:

• An average Edmonton condo needs about $10,700 minimum down; the average detached home about $33,600
• Alberta’s zero land transfer tax keeps your closing cash requirement far below Ontario or BC
• Down payment is only part of the budget — lenders also count property tax and heat in affordability

---

How Much Mortgage Can You Qualify For?

Your down payment sets the minimum, but your income caps the maximum. Lenders qualify you using two ratios set by CMHC: housing costs can’t exceed 39% of gross income (GDS), and all debt payments combined can’t exceed 44% (TDS). Both are tested at the stress-test qualifying rate — the greater of your contract rate plus 2%, or the 5.25% floor.

Applying those rules produces these illustrative answers to the questions buyers ask most:

A practical example: a buyer earning $70,000 in Edmonton with no car payments could qualify for roughly $320,000 of mortgage. With the minimum 5% down saved, that supports a purchase around $330,000–$340,000 — comfortably covering Edmonton’s average condo or townhouse with room to spare. If other debts exist, the TDS ceiling shrinks that number fast.

Key takeaways:

• GDS 39% / TDS 44% at the stress-tested rate determine your maximum mortgage
• A $70,000 salary typically supports a low-$300Ks mortgage with clean credit and little debt
• Use the FCAC Mortgage Qualifier Tool for your actual number before shopping

---

First-Time Buyer Programs That Cut Your Cash Requirement

Canada stacks several programs that can dramatically reduce the cash a first-time buyer needs on closing day:

1. First Home Savings Account (FHSA) — contribute up to $8,000 per year, $40,000 lifetime; contributions are tax-deductible and withdrawals for a first home are tax-free.
2. Home Buyers’ Plan (HBP) — withdraw up to $60,000 from your RRSP tax-free for a first home; repayment spans 15 years. You can combine FHSA and HBP on the same home — up to $100,000 of registered funds.
3. First-Time Home Buyers’ GST Rebate — eliminates the GST (up to $50,000 in savings) on newly built homes valued up to $1 million, phasing out to $1.5 million. Ontario adds its own provincial HST portion rebate on top.
4. 30-year insured amortization — available to all first-time buyers and new-build purchasers since December 15, 2024. It doesn’t reduce the down payment, but it lowers your monthly payment and can help you qualify for more.

Key takeaways:

• FHSA + HBP together give first-time buyers access to up to $100,000 in registered savings
• Buying new construction? The GST rebate alone can save up to $50,000
• 30-year amortizations stretch affordability without changing the down payment rules

---

Second Homes, Rentals, and Homes Over $1.5 Million

The 5% minimum applies to owner-occupied homes only. The minimum down payment for a second home in Canada is 20% if it’s owner-occupied (like a cottage); investment properties and rentals typically require 20% or more because mortgage loan insurance isn’t available for them. And at $1.5 million or more, insurance disappears entirely — 20% down becomes the hard floor regardless of use.

If you’re weighing a rental purchase instead, see our breakdown of investing in Edmonton real estate.

---

How to Build Your Down Payment Faster

1. Open an FHSA first. The $8,000 annual contribution is deductible immediately — at a 30% marginal tax rate, that’s $2,400 back at tax time per year contributed.
2. Then build RRSP room for the HBP. Contributions sit deductible until you withdraw them tax-free under the $60,000 plan.
3. Document any family gifts early. Insured mortgages accept non-repayable gifts from immediate relatives, but lenders require a signed gift letter and paper trail — get it done weeks before applying.
4. Keep the money parked 90+ days. Lenders want to see seasoned funds; sudden large deposits trigger source-of-funds scrutiny.

Not sure whether you’re ready overall? Our Edmonton Real Estate 2026 outlook covers where the market is heading — and if you’re timing a purchase around financing costs, see what the rate cut means for Edmonton buyers.

---

Frequently Asked Questions