🍁 Free Canadian Tool
Down Payment Calculator Canada 2026
Calculate your minimum down payment, see CMHC insurance costs, and explore savings options like the FHSA and Home Buyers' Plan.
Updated March 2026 • CMHC rules • FHSA + HBP included
🏠 Home Purchase Details
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📊 Your Down Payment Analysis
Minimum Down Payment Required
$40,000
6.15% of purchase price
Your Down Payment
$50,000
Your Percentage
7.69%
Mortgage Amount
$600,000
CMHC Insurance
$24,000
5%
Under $500K
$32,500
5-10%
$500K - $999K
$40,000
20%
$1M+
$130,000
Total Cash Needed at Closing
Down Payment
$50,000
Land Transfer Tax (est.)
$8,475
Legal Fees (est.)
$2,000
Home Inspection
$500
Estimated Total
$60,975
💰 First-Time Buyer Savings Options
FHSA (First Home Savings Account)
$8,000/year, $40,000 lifetime
$40,000
HBP (Home Buyers' Plan)
Withdraw from RRSP tax-free
$60,000
Combined Maximum
FHSA + HBP together
$100,000
✓ You meet the minimum! Your $50,000 down payment exceeds the minimum requirement of $40,000. You'll need CMHC mortgage insurance since your down payment is less than 20%.
Down Payment Requirements in Canada (2026)
Understanding Canada's down payment rules is essential for home buyers. The minimum down payment depends on the purchase price, and putting down less than 20% means you'll need mortgage default insurance (commonly called CMHC insurance, though other providers exist). This calculator helps you understand exactly how much you need to save.
Minimum Down Payment Rules
| Purchase Price | Minimum Down Payment | Example ($650K Home) |
|---|---|---|
| Up to $500,000 | 5% of purchase price | $25,000 (on first $500K) |
| $500,001 - $999,999 | 5% on first $500K + 10% on remainder | $25,000 + $15,000 = $40,000 |
| $1,000,000+ | 20% of purchase price | N/A (would be $200K on $1M) |
CMHC Mortgage Insurance Premiums
If your down payment is less than 20%, you must pay mortgage default insurance. The premium is based on your loan-to-value (LTV) ratio:
| Down Payment | LTV Ratio | Insurance Premium | On $600K Mortgage |
|---|---|---|---|
| 5% - 9.99% | 95% - 90.01% | 4.00% | $24,000 |
| 10% - 14.99% | 90% - 85.01% | 3.10% | $18,600 |
| 15% - 19.99% | 85% - 80.01% | 2.80% | $16,800 |
| 20%+ | 80% or less | Not required | $0 |
Note: CMHC insurance is added to your mortgage, so you pay it over the life of the loan (not upfront). Provincial sales tax may also apply to the premium in some provinces.
First Home Savings Account (FHSA) – 2026
The FHSA is a registered account designed specifically for first-time home buyers:
- Annual contribution limit: $8,000
- Lifetime contribution limit: $40,000
- Carry-forward: Unused room carries forward (max $8,000)
- Tax treatment: Contributions are tax-deductible (like RRSP), withdrawals for home purchase are tax-free (like TFSA)
- Eligibility: Canadian resident, 18+, first-time buyer (haven't owned a home in current or past 4 years)
- Deadline: Must use within 15 years of opening, or by age 71
Home Buyers' Plan (HBP) – 2026
The HBP lets you withdraw from your RRSP tax-free to buy your first home:
- Maximum withdrawal: $60,000 per person ($120,000 for couples)
- Repayment: Must repay to RRSP over 15 years (starting 2nd year after withdrawal)
- First-time buyer: Haven't owned a home in current or past 4 calendar years
- RRSP seasoning: Funds must be in RRSP for at least 90 days before withdrawal
Combining FHSA and HBP
First-time buyers can use both programs together for a potential $100,000 tax-advantaged down payment ($40,000 FHSA + $60,000 HBP). For a couple, this could be up to $200,000!
Other Closing Costs to Budget For
| Cost | Typical Range | Notes |
|---|---|---|
| Land Transfer Tax | 0.5% - 2.5% | Varies by province; Toronto has additional municipal LTT |
| Legal Fees | $1,500 - $2,500 | Title search, registration, mortgage setup |
| Home Inspection | $400 - $600 | Highly recommended before purchase |
| Appraisal | $300 - $500 | Often required by lender |
| Title Insurance | $200 - $400 | Protects against title defects |
| Moving Costs | $500 - $2,000 | Depends on distance and belongings |
| Property Tax Adjustment | Varies | Reimburse seller for prepaid taxes |
Rule of thumb: Budget 1.5% to 4% of the purchase price for closing costs beyond your down payment.
Frequently Asked Questions
What is the minimum down payment for a $500,000 home?
For a $500,000 home, the minimum down payment is 5%, which equals $25,000. Since this is under $1 million and under 20% down, you'll also need CMHC mortgage insurance (approximately 4% of the mortgage amount, or $19,000 added to your loan).
Can I use gifted money for my down payment?
Yes, gifted funds from immediate family members (parents, siblings, grandparents) are acceptable for down payments in Canada. You'll need a gift letter stating the funds are a gift (not a loan) and don't need to be repaid. Some lenders may require the gift to be in your account for a period before closing.
What's the difference between FHSA and TFSA for saving?
The FHSA offers the best of both worlds: contributions are tax-deductible (like an RRSP) and withdrawals for a home purchase are tax-free (like a TFSA). However, the FHSA is only for first-time buyers and must be used for a home within 15 years. A TFSA is more flexible but doesn't offer the tax deduction on contributions.
Is it better to put 20% down or less?
Putting 20% down avoids CMHC insurance (saving thousands) and gives you lower monthly payments. However, saving 20% takes longer, and housing prices may rise while you save. Many buyers find 5-10% down allows them to enter the market sooner, even with the insurance cost. Consider your timeline and local market conditions.
Can I buy a home over $1 million with less than 20% down?
No. For homes priced at $1 million or more, the minimum down payment is 20%. CMHC and other mortgage default insurers don't provide insurance for homes over $1 million. You'll need at least $200,000 down for a $1 million home.
How long does it take to save for a down payment?
It depends on your savings rate and home price. For a $500,000 home with a 5% ($25,000) down payment: saving $500/month takes about 4 years; $1,000/month takes 2 years. Don't forget closing costs—add another 2-3% of the purchase price to your savings goal.
Do I qualify as a first-time home buyer if I owned years ago?
For FHSA and HBP purposes, you're considered a first-time buyer if you haven't owned a home that was your principal residence in the current year or the preceding four calendar years. So if you sold your home more than 4 years ago, you may qualify again.
Accuracy Commitment: This calculator uses current CMHC down payment rules and 2026 FHSA/HBP limits. Land transfer tax estimates are approximate—actual amounts vary by province and municipality. Consult a mortgage professional for personalized advice on your home purchase.