Canadian residents have several down payment options available to them. For most home buyers, a minimum of 5 percent down is required on homes under $500,000. For homes with a purchase price of $500,000 and over, you are required to pay 10 percent down on any amount over the $500,000. For example:

If you purchased a home for $550,000, you would be required to pay 5 percent down on the first $500,000 of that purchase. Your down payment for that portion of the mortgage would be $25,000. For the remaining $50,000, you would be required to put a minimum of 10 percent down. This equates to an additional $5000, bringing the total minimum down payment to $30,000.

While there is a 5 percent flex down mortgage option available for those who do not have the funds for a down payment, it comes with strict criteria that must be met and a higher CMHC premium than if you were to pay the 5% from your own savings.

Paying less than 20 percent down on any mortgage means you would need mortgage default insurance, and you would be required to pay a premium based on the purchase price of your home and the down payment option you choose. Our mortgage calculator can help you determine what your payments would look like with the CMHC premium included. With a 20 percent down payment, you avoid all CMHC costs; however this amount can be quite difficult to come up with and can mean the difference between being able to afford a home or not for some prospective home buyers.

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Down Payment Options

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