If you are considering purchasing your first home in Canada, the first thing you will typically wonder is ” How much down payment do I need?”
For 2025, rules are consistent, although with a few things to be aware of, especially if you are buying in Alberta or other competitive markets.
✅ The minimum down payment you will need depends on the price of the home
Homes worth a maximum of $500,000: 5% of the purchase price.
Homes worth between $500,001 and $1,499,999: 5% of the first $500,000 and 10% of the amount over $500,001
Homes worth $1.5 million or more, need a down payment of at least 20%.
Example:
-For a $600,000 home:
5% of $500,000 = $25,000
10% of $100,000 = $10,000
Total down payment: $35,000
Note: As of December 15, 2024, the cap for insured mortgages increased from $1 million to $1.5 million, allowing buyers to make lower down payments on more expensive homes .
✅ Do you need 20% down to have no mortgage insurance?
Yes. If there’s less than 20% down, you will have to pay for mortgage default insurance (typically CMHC or similar). This insures the lender but will be added as a premium to your mortgage. Many first-time home buyers will enter the market with 5% down, and that’s perfectly fine if you qualify with your lender!
✅ How to save for your down payment?
Alejandra Diaz is a trusted mortgage agent in Alberta and in many cases, she’ll recommend you create a clear savings action plan, and you look into the government incentives available to first-time buyers, including:
-The First-Time Home Buyers’ Incentive (FTHBI)
-The Home Buyers’ Plan (HBP) allowing you to use your RRSP Provincial down payment assistance programs
She would be happy to analyse your circumstances and options available to you to recommend the best plan of action to help you get to your goal faster.
✅ Final thoughts
Buying a house can be one of the biggest financial decisions you’ll make in your life. Knowing how much you need for your down payment is the first step to achieving home ownership in Canada.
If you have any concerns as to how much you can afford or if you would like to have some help in getting started as to down payment options, Alejandra is able to help you through the entire process, with bilingual support, advice tailored to your needs, and access to top lenders.
