How much of a down payment do I need in Ontario?

In Ontario, the federal minimum down payment is 5% of the first $500,000 of the price, plus 10% of the portion between $500,000 and $1.5 million. At $1.5 million or more, you need 20%. If you put down less than 20%, your mortgage must carry default insurance, and the premium is usually added to your loan.

How the minimum is calculated

The rules come from the federal government and apply across Canada, including Ontario (source: canada.ca, Financial Consumer Agency of Canada, checked October 2026). There are three bands:

Up to $500,000: at least 5% of the price.
$500,000 to under $1.5 million: 5% of the first $500,000, plus 10% of the amount above $500,000.
$1.5 million or more: at least 20% of the whole price.

The $1.5 million line has applied since December 15, 2024, when the price cap for insured mortgages rose from $1 million. Homes priced at $1.5 million or more cannot be insured, which is why they need 20% down.

A worked example of the minimum down payment

Say you are buying a home for $800,000.

5% of the first $500,000 is $25,000.
10% of the remaining $300,000 is $30,000.
Your minimum down payment is $55,000, about 6.9% of the price.

Your mortgage would be $745,000, which is about 93% of the price. The loan size puts you in CMHC's 90.01–95% band, where the default insurance premium is 4.00% of the loan, or $29,800. The premium is added to your mortgage. Ontario charges 8% provincial sales tax on the premium, about $2,384 here. That tax cannot be added to the loan; you pay it at closing.

You can check other prices in the CMHC premium tool. The tool's results are estimates only, not an offer or advice; lender rules and your full file decide.

Why you might put down more than the minimum

Default insurance protects the lender, not you, if you stop paying. With 20% or more down, you avoid the premium entirely, and your mortgage is smaller, so you pay less interest over its life.

Putting down more than the minimum has a trade-off. Putting every dollar into the down payment can leave you with no cushion for closing costs, moving and the first repairs. You pay land transfer tax and legal fees in cash at closing, so many buyers keep that money separate from the down payment.

Where your down payment can come from

Lenders want to see where your down payment came from. Savings, a First Home Savings Account (FHSA), an RRSP withdrawal under the Home Buyers' Plan, the sale of another property and a gift from family are common sources. Lenders usually ask for recent account statements to show the funds have been in your name for a while.

What to do next

If you would like help working out the down payment for the homes you are looking at, use our call-me-back form. You can also run your numbers in the affordability calculator.

Common follow-up questions

Do I need 20% down for a rental property?

Generally, yes. Default insurance is designed for homes you or a close relative will live in. So a purely rental property usually needs at least 20% down from a bank or monoline lender. Confirm with us, because lender rules vary by property type.

Can I use a gift for my down payment?

Usually, yes. Lenders normally ask for a signed gift letter confirming the money does not have to be repaid, and proof the funds have reached your account before closing.

Is the CMHC premium paid upfront?

No, not the premium itself. The premium is normally added to your mortgage and paid off over time. The Ontario sales tax on the premium is the part you pay in cash at closing.