With less than 20% down in Canada you need mortgage default insurance, which costs 2.8% to 4.0% of the loan and is added to your mortgage. The minimum down payment is 5% of the first $500,000 and 10% of the rest, and homes priced at $1.5 million or more need 20% down. Enter your numbers below to see your payment.
Minimum down payment in Canada
- Up to $500,000: 5% of the price.
- $500,000 to under $1.5 million: 5% of the first $500,000 plus 10% of the rest. Example: an $800,000 home needs $25,000 + $30,000 = $55,000.
- $1.5 million or more: 20%. Insurance is not available.
CMHC insurance premiums
The premium depends on how much you borrow compared with the price (loan-to-value). These are the published CMHC homeowner rates; the other insurers, Sagen and Canada Guaranty, use similar rates.
- Up to 65%: 0.60% · 65.01–75%: 1.70% · 75.01–80%: 2.40%
- 80.01–85% (15–19.99% down): 2.80%
- 85.01–90% (10–14.99% down): 3.10%
- 90.01–95% (5–9.99% down): 4.00%
- Amortization over 25 years: add 0.20%.
Since December 15, 2024, first-time buyers and buyers of newly built homes can choose a 30-year amortization on an insured mortgage, and the insured price limit is $1.5 million.
Which payment frequency is best?
Bi-weekly and weekly payments cost about the same as monthly over a year. Accelerated bi-weekly payments are half of the monthly payment every two weeks, which adds up to one extra monthly payment a year and can take a few years off a 25-year mortgage.
Related: how much home can I afford? · buyer closing costs calculator · rent vs buy calculator · real estate glossary
Want help with your numbers?
A mortgage broker or your bank can confirm your rate and approval. I am happy to introduce you to someone and help you match your budget to the right homes.
Muzaffar Manghat, REALTOR®, Sutton Premier Realty · Call or text 604-785-5555 · Send me a message
Sources
- CMHC: Mortgage loan insurance premiums
- FCAC: How much you need for a down payment
- Finance Canada: Mortgage reforms (30-year amortization, $1.5 million cap)
- FCAC: Mortgage terms and amortization
This tool is general information, not financial, tax, mortgage or legal advice. Results are estimates; confirm your figures with your lender, your lawyer or notary and your accountant. This is not intended to solicit buyers or sellers currently under contract with a brokerage.
