Down Payment Rules in Canada
Minimum requirements, gifted down payments, and strategies to bridge the gap.
Minimum down payment by price
Up to $500,000: 5%. $500,000–$1,500,000: 5% on first $500K, 10% on the portion above. Over $1,500,000: 20% minimum on the entire purchase.
Insured vs uninsured mortgages
Below 20% down = insured (CMHC, Sagen, or Canada Guaranty). Insurance premiums (2.8–4% of mortgage amount) are added to your mortgage. Insurance also unlocks better interest rates and the lender's most competitive pricing.
Gifted down payments
Gifts from immediate family are fully accepted by most lenders. You'll need a signed gift letter confirming no repayment obligation, and the funds should be in your account 30+ days before closing or traceable from the gifter.
Home Buyers' Plan (RRSP withdrawal)
First-time buyers can withdraw up to $60,000 each from their RRSPs tax-free (raised in 2024). Repayment to the RRSP happens over 15 years. Combined with a partner, a couple can pull $120,000 of down payment from RRSPs.
FHSA (First Home Savings Account)
Contribute up to $8,000/year (max $40,000 lifetime). Contributions are tax-deductible and withdrawals for first-home purchases are tax-free. The FHSA is now widely considered the most powerful down-payment tool for new buyers.
Have questions about your situation?
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