Minimum Down Payment in Ontario: What You Need to Buy in 2026

For an insured purchase, the minimum is 5% of the first $500,000 of the price and 10% of the portion between $500,000 and $1.5 million. Homes at $1.5 million or more need at least 20% down. For a $700,000 home, that is $25,000 plus $20,000, so $45,000. A 3 to 4 unit property you live in needs at least 10%, and a rental property you don't live in generally needs at least 20%. These are the minimums for insured mortgages, and a lender can ask for more.

Not quite. On a $700,000 home, 5% applies to the first $500,000 ($25,000) and 10% applies to the next $200,000 ($20,000), so the minimum is $45,000, or about 6.43% of the price. A flat 5% only works for homes up to $500,000, where it is $25,000.

The First Home Savings Account (FHSA) lets first-time buyers contribute up to $8,000 a year, to a lifetime limit of $40,000. You can carry forward up to $8,000 of unused room. Contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free. A couple can build up to $80,000 together.

Yes. First-time buyers can use both. The FHSA allows up to $40,000 per person, tax-free for a qualifying purchase. The RRSP Home Buyers' Plan allows up to $60,000 per person, which you repay over 15 years. Together that is up to $100,000 per person, or $200,000 for a couple, if you have the room and meet the conditions. Rules and timing apply, so we plan the order with you.

Yes. Lenders generally accept a non-repayable gift from a close family member, with a signed gift letter confirming it does not need to be repaid. Lenders usually want to see the funds in your account before closing, so plan the timing early.

Mortgage default insurance is required when your down payment is less than 20%. With a traditional down payment, CMHC's premium is 4.00% of the mortgage at 5% to 9.99% down, 3.10% at 10% to 14.99%, and 2.80% at 15% to 19.99%. It is usually added to your mortgage. For example, on a $500,000 home with 5% down, the mortgage is $475,000 and the premium is $19,000. Ontario also charges 8% sales tax on the premium, which can't be added to the mortgage and is paid in cash at closing. See our CMHC mortgage insurance guide for more.

On top of your down payment, budget for Ontario land transfer tax (and Toronto land transfer tax if you buy in Toronto), legal fees, title insurance, a home inspection, adjustments on closing day, and Ontario sales tax on the mortgage insurance premium if you have one. First-time buyers can get an Ontario land transfer tax rebate of up to $4,000, and up to $4,475 more in Toronto, for a combined rebate of up to $8,475.

Insured mortgages generally have a 25 year maximum amortization. Since December 2024, first-time buyers and buyers of a new build can use up to 30 years on an insured mortgage. A longer amortization lowers your payment but increases the total interest you pay, and an amortization beyond 25 years adds a 0.20% surcharge to the insurance premium.