Mortgages
Down Payments and CMHC Mortgage Insurance in Canada
The minimum down payment for any price, what CMHC insurance costs with less than 20% down, and where your down payment can come from.
What is the minimum down payment?
5% of the first $500,000 of the price, plus 10% of the part between $500,000 and $1.5 million. At $1.5 million or more, you need 20% of the whole price.
| Home price | Minimum down payment | Share of price |
|---|---|---|
| Top$400,000 | $20,000 | 5% |
| $600,000 | $35,000 | 5.83% |
| $900,000 | $65,000 | 7.22% |
| $1,200,000 | $95,000 | 7.92% |
| $1,500,000 | $300,000 | 20% |
When do I need mortgage insurance?
When your down payment is less than 20%. It protects the lender, not you, if you stop paying, and it’s what lets lenders accept a small down payment.
Insured mortgages are only available on homes priced under $1.5 million, and the longest amortization is 25 years, or 30 for first-time buyers and new builds.
How much does CMHC insurance cost?
The premium is a percentage of your mortgage that falls as your down payment rises.
| Down payment | Mortgage as share of price | CMHC premium |
|---|---|---|
| Top15% to 19.99% | 80.01% to 85% | 2.8% |
| 10% to 14.99% | 85.01% to 90% | 3.1% |
| 5% to 9.99% | 90.01% to 95% | 4% |
Example: on a $600,000 home with 10% down, the mortgage is $540,000 and the premium is $16,740, which is usually added to the mortgage.
A 30-year amortization adds 0.2% to the premium. In Ontario, Quebec and Saskatchewan you also pay provincial sales tax on the premium at closing; it can’t be added to the mortgage.
Where can my down payment come from?
Your savings, money from selling a property, or a gift from a relative that doesn’t have to be repaid.
You can also use a First Home Savings Account (up to $40,000 in contributions) and withdraw up to $60,000 from your RRSP under the Home Buyers’ Plan. Lenders will ask to see where the money came from.
Keep reading
MortgagesFirst-Time Home Buyer Programs in CanadaThe federal programs that help first-time buyers: the FHSA, the Home Buyers’ Plan, the home buyers’ amount, the GST rebate on new homes and 30-year amortizations.
MortgagesClosing Costs When Buying a Home in CanadaWhat closing costs are, how much to budget, and which programs can lower them for first-time buyers.
MortgagesThe Mortgage Stress Test in CanadaWhat the stress test is, how the qualifying rate is set, how it affects how much you can borrow, and when it doesn’t apply.
MortgagesWhat Credit Score Do You Need for a Mortgage in Canada?For an insured mortgage with less than 20% down, CMHC requires at least one borrower to have a credit score of 600 or more. What lenders look for beyond the score, and what to do if yours is lower.
Official sources and further reading
- FCAC: Down payment ↗
- Finance Canada: mortgage reforms in force December 15, 2024 ↗
- CMHC: Mortgage loan insurance premiums ↗
- CMHC: 30-year amortization premium surcharge ↗
- CMHC: Requirements for mortgage loan insurance ↗
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value