Down Payment Requirements — Ontario 2026

What Is the Minimum Down Payment Required to Buy a Home in Ontario in 2026?

Canada's minimum down payment rules in 2026: 5%on the first $500,000 of purchase price • 10% on the $500,001–$1,499,999 portion • 20% for homes at $1,500,000+. For a $700,000 home: minimum down payment is $45,000(5% × $500K + 10% × $200K). Sources: FHSA (up to $40,000 lifetime), RRSP Home Buyers' Plan ($35,000/person), savings, or gift from immediate family. lendsimpl (FSRA #13763) calculates your down payment requirement and best lender strategy for free.

Minimum Down Payment by Purchase Price — Ontario 2026

*Down payment calculation: 5% on first $500K + 10% on portion above $500K. CMHC premium assumes minimum down payment.

Purchase Price	Min Down (5%)	10% Down	20% Down	CMHC Premium (min down)
$400,000	$20,000	$40,000	$80,000	$15,200
$500,000	$25,000	$50,000	$100,000	$19,000
$600,000	$35,000*	$60,000	$120,000	$17,515
$700,000	$45,000*	$70,000	$140,000	$20,305
$800,000	$55,000*	$80,000	$160,000	$23,095
$900,000	$65,000*	$90,000	$180,000	$25,885
$1,000,000	$75,000*	$100,000	$200,000	$28,675
$1,500,000+	N/A	N/A	$300,000+	N/A

Ontario PST (8%) on CMHC premium is an additional closing cost. Homes ≥$1.5M require minimum 20% down.

Down Payment Sources Available to Ontario Buyers

First Home Savings Account

FHSA

Best for FTBs

Up to $40,000

$8,000/year max contribution. Tax-deductible contributions + tax-free withdrawals. Best first-time buyer tool available.

Home Buyers' Plan

RRSP HBP

First-time buyers

$35,000/person

Withdraw from RRSP tax-free. $70,000 per couple. Repay over 15 years or income inclusion applies.

Any account

Personal Savings

Any buyer

No limit

Must show 90-day history showing funds are yours. Lenders verify source — explain any large deposits.

Immediate family only

Family Gift

Any buyer

No limit

Parents, siblings, grandparents. Donor signs gift letter confirming no repayment expected.

First-Time Buyer Down Payment Strategy: FHSA + RRSP HBP Combination

A couple who are both first-time buyers can stack FHSA and RRSP HBP for maximum down payment from tax-advantaged accounts:

Partner A — FHSA

Lifetime maximum

$40,000

Partner B — FHSA

Lifetime maximum

$40,000

Partner A — RRSP HBP

Tax-free withdrawal

$35,000

Partner B — RRSP HBP

Tax-free withdrawal

$35,000

Total combined down payment

$150,000

Plus Ontario Land Transfer Tax rebate (up to $8,475 in Toronto) and First-Time Home Buyers' Tax Credit (~$1,500).

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Down Payment FAQ — Ontario 2026

What is the minimum down payment for a $700,000 home in Ontario?▾

The minimum down payment for a $700,000 home in Ontario is $45,000: 5% on the first $500,000 = $25,000, plus 10% on the remaining $200,000 = $20,000. This results in an insured mortgage of $655,000, with a CMHC premium of 3.10% ($20,305) added to the mortgage balance.

Can I use my RRSP for a down payment in Ontario?▾

Yes. Under the RRSP Home Buyers' Plan (HBP), first-time home buyers can withdraw up to $35,000 per person ($70,000 per couple) from their RRSP tax-free to use as a down payment. The funds must have been in the RRSP for at least 90 days before withdrawal. You must repay the withdrawn amount over 15 years, starting 2 years after withdrawal. If you do not make the annual repayment, it is added to your taxable income.

What is the FHSA and how does it help with a down payment in Ontario?▾

The First Home Savings Account (FHSA), launched in 2023, allows first-time home buyers to contribute up to $8,000 per year (lifetime maximum $40,000). Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free — making it the most powerful first-time buyer savings account in Canadian history. Combining a FHSA ($40,000) with RRSP HBP ($35,000/person) gives a couple up to $150,000 in down payment from tax-advantaged accounts.

Can a gift from a family member be used as a down payment in Ontario?▾

Yes. Monetary gifts from immediate family members (parents, siblings, grandparents) are acceptable as down payment funds for A-lender mortgages in Canada. The donor must sign a gift letter confirming the funds are a gift and not a loan. No repayment is expected. Gift funds must typically be in your account 3–15 days before closing, with a bank statement showing the transfer.

What happens if I put less than 20% down on a home in Ontario?▾

If you put less than 20% down, your mortgage must be insured by CMHC, Sagen, or Canada Guaranty. The insurance premium (2.80%–4.00% of the mortgage) is added to your mortgage balance. You pay Ontario PST (8%) on the premium at closing. Insured mortgages receive slightly lower rates than uninsured mortgages, which partially offsets the premium cost.

Can a first-time buyer in Ontario get a 30-year amortization with less than 20% down?▾

Yes, but only for newly built homes. Since August 2024, first-time home buyers purchasing newly constructed (never occupied) properties can access 30-year amortization on insured mortgages. All other buyers with less than 20% down are limited to a maximum 25-year amortization on insured mortgages. A 30-year amortization reduces monthly payments by approximately 9–10% vs. 25-year.

Do I need 20% down to buy a home over $1,000,000 in Ontario?▾

For homes priced between $1,000,000 and $1,499,999, a minimum 20% down payment was previously required but this changed in December 2024 — buyers can now put as little as 5% on the first $500K and 10% on the remaining portion. For homes priced at $1,500,000 and above, a minimum 20% down payment is still required, as insured mortgages are not available at these price points.

What is the maximum down payment assistance available to a first-time buyer in Ontario?▾

A first-time buyer couple in Ontario can access: FHSA = $40,000 each ($80,000 combined); RRSP HBP = $35,000 each ($70,000 combined); Land transfer tax rebates = up to $8,475 in Toronto (reduces cash needed at closing); First-Time Home Buyers' Tax Credit = ~$1,500 tax saving. That is up to $150,000 in combined FHSA + RRSP HBP plus closing cost savings.