If you've ever Googled “how much do I need to buy a house?” and then panicked… you're not alone. 😅
Down payments are one of the biggest question marks (and stress points) for buyers—especially first-timers. But the good news? You probably need less than you think to get started.
Let’s break down what’s required, what’s optional, and what makes the most sense for you.
💰 Minimum Down Payment in Canada (2025 Edition)
Here’s the quick math:
For homes under $500,000 → Minimum 5%
For homes between $500,000–$999,999 → 5% on the first $500K + 10% on the rest
For homes $1 million+ → Minimum 20%
🔢 Example:
Buying a $750,000 home?
First $500K → 5% = $25,000
Next $250K → 10% = $25,000
➡️ Total minimum = $50,000
🏦 What if I want to put down more?
Putting down more than the minimum isn’t required—but it can help in a few ways:
Lower monthly payments
Less interest paid over time
No CMHC insurance if you hit 20%
More equity in your home from day one
But if putting down 20% means draining your savings and living off Kraft Dinner for the next 5 years... let's talk options first. 🧀
💡 Pro tip: It’s not all or nothing
You don’t have to choose between 5% and 20%.
Some clients do 8%, 12%, or 15%—and we strategize to make sure it works for their short- and long-term goals. You don’t need to hit some magical number to be “ready.”
🧳 Where can my down payment come from?
You’ve got options! Common sources include:
Personal savings
RRSPs (via the Home Buyers’ Plan)
Gifts from family
Proceeds from selling another property
In some cases, borrowed down payments may be allowed
🙋♀️ Common questions I get (and quick answers):
Do I need 20% down to buy a home?
Nope! You can buy with as little as 5% (as long as the home is under $1M).
Is it better to wait until I have a bigger down payment?
Not always. Waiting may mean missing out on appreciation. Let’s run the math for both paths.
Can I use my RRSPs for a down payment?
Yes! Through the Home Buyers’ Plan, you can withdraw up to $60,000 tax-free in 2025.
What if I’m getting a gift?
Totally allowed—but your lender will want a signed gift letter confirming it’s not a loan.
👉 Thinking about your next move? Let’s chat mortgages + MLS® today.