How much do I really need for a down payment, and what is mortgage default insurance?

Roger Carroll ✓ Verified
Real Mortgage Associates Inc. operating as RMA Real Mortgage Associates · Mississauga, Ontario

In Canada the minimum down payment is 5% for the first $500,000 of a home’s price and 10% on the portion above $500,000 (up to $1.5M). If you put less than 20% down, you must purchase mortgage default insurance (e.g. CMHC/Genworth). This insurance protects the lender in case of default and its premiums are usually added to your mortgage.

Answered October 2026

Jesse Lombardo-Bottema ✓ Verified
Sunlite Mortgage Corporation operating as Sunlite Mortgage · Caledonia, Ontario

You may be able to buy with as little as 5% down. Unless you're going north of 1.5M purchase price, you don't need the 20% you've heard about. The minimum depends on the purchase price, and with less than 20% down you'll need mortgage default insurance, which adds to your mortgage cost. Waiting years just to reach 20% has trade-offs too. I’d compare buying earlier versus continuing to save rather than treating 20% as the automatic goal.

Answered October 2026