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How Much You Need For A Down Payment

Minimum down payment

A down payment is the amount of money that you put towards the purchase of a home. The down payment is deducted from the purchase price of your home. Your mortgage loan will cover the rest of the price of the home.

The minimum amount you'll need for your down payment depends on the purchase price of the home you'd like to buy.


The minimum amount you'll need for your down payment based on the purchase price of your home


Purchase price of your home                                                   Minimum amount of down payment

$500,000 or less                                                                              5% of the purchase price


$500,000 to $999,999                                                                    5% of the first $500,000 of the purchase price

10% for the portion of the purchase price above $500,000


$1 million or more                                                                            20% of the purchase price


If you're self-employed or have a poor credit history, you may be required to provide a larger down payment.


Normally, the minimum down payment must come from your own funds. It's better to save for a down payment and minimize your debts.


Home Buyers’ Plan (HBP)

To help you come up with a down payment, you may be eligible for the Home Buyers’ Plan (HBP). The Home Buyer’s Plan allows you to withdraw up to $25,000, tax-free, from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. You have up to 15 years to repay the amounts you withdrew.

Before you sign up for the Home Buyers' Plan, consider:

  • if you'll be able to make the repayments
  • will withdrawing funds impact your retirement savings


Keep in mind:

  • Not making the repayments could end up costing you a lot of money in income tax
  • Even though you'll eventually repay the funds, you may still lose out on any growth while the funds are withdrawn