Buying
Down Payment
The cash portion you pay upfront. Minimum 5% on the first $500,000 and 10% on the portion above. 20%+ avoids CMHC insurance.
Canada's minimum down-payment rules are tiered. On a property up to $500,000, you must put down at least 5%. Between $500,001 and $1.5 million, you must put down 5% on the first $500,000 plus 10% on the portion above. Properties over $1.5 million require 20% across the board because they exceed the CMHC insurance cap.
A 20% down payment makes the mortgage conventional and removes the CMHC insurance premium. Funds can come from your own savings, an RRSP withdrawal under the Home Buyers' Plan (up to $60,000), a gift from an immediate family member (with a signed gift letter), or proceeds from selling another property.
Lenders verify the source of funds as part of anti-money-laundering rules — keep 90-day account statements ready.