Down Payment Calculator

Calculate required down payments, CMHC insurance, and first-time home buyer benefits in Canada with detailed cost breakdowns.

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Complete Canadian Down Payment Guide 2025

🏠 Understanding Canadian Down Payments

A down payment is the initial amount you pay when purchasing a home. In Canada, the minimum down payment varies based on the home price, and down payments under 20% require CMHC insurance to protect the lender.

  • Minimum requirements: 5% for homes under $500,000
  • Tiered system: 5% on first $500,000, 10% on remainder
  • CMHC insurance: Required for down payments under 20%
  • Benefits of 20%: No CMHC insurance, better rates

💰 2025 Down Payment Requirements

Home Price Tiers

  • • Under $500,000: 5% minimum
  • • $500,000-$1,000,000: 5% on first $500,000 + 10% on remainder
  • • Over $1,000,000: 20% minimum
  • • Investment properties: 20% minimum

CMHC Insurance Rates

  • • 5% down: 4.0% insurance rate
  • • 10% down: 3.1% insurance rate
  • • 15% down: 2.8% insurance rate
  • • 20% down: No insurance required

📊 Down Payment vs Total Cost

Home PriceMin DownCMHC RateTotal Cost
$400,000$20,000 (5%)4.0%$20,000 + $15,200
$600,000$35,000 (5.8%)3.1%$35,000 + $17,500
$800,000$55,000 (6.9%)2.8%$55,000 + $20,800
$1,000,000$200,000 (20%)0%$200,000

🎯 First-Time Home Buyer Benefits

RRSP Home Buyers' Plan

Withdraw up to $35,000 from RRSPs tax-free for first home purchase. Must repay over 15 years.

First-Time Home Buyer Incentive

Government shares in home equity (5-10%) to reduce mortgage payments. Must be repaid when selling.

Land Transfer Tax Rebates

Provincial rebates available in Ontario and BC. Can save thousands on closing costs.

Canadian Down Payment Calculator FAQ

What is the minimum down payment in Canada?

The minimum down payment is 5% for homes under $500,000, 5% on the first $500,000 plus 10% on amounts between $500,000-$1,000,000, and 20% for homes over $1,000,000. CMHC insurance is required for down payments under 20%.

How does CMHC insurance work?

CMHC insurance protects the lender if you default on your mortgage. It's required for down payments under 20% and rates range from 4.0% to 2.4% based on your loan-to-value ratio. The premium is added to your mortgage amount and paid over the life of the loan.

Can I use RRSP funds for a down payment?

Yes, through the RRSP Home Buyers' Plan, you can withdraw up to $35,000 tax-free from your RRSP for a first home purchase. You must repay the amount over 15 years, starting in the second year after withdrawal.

What are the benefits of a 20% down payment?

A 20% down payment eliminates CMHC insurance (saving thousands), often results in better mortgage rates, reduces monthly payments, and provides immediate equity in your home. It also demonstrates financial stability to lenders.

What is the First-Time Home Buyer Incentive?

The FTHBI is a shared equity program where the government provides 5-10% of the home's value to reduce your mortgage. You must repay the amount when you sell, and it's only available for homes under $500,000 in most areas.

How do I calculate the total cost of buying a home?

Total cost includes: down payment + CMHC insurance + land transfer tax + legal fees + home inspection + moving costs + property taxes + insurance + utilities setup. This can add 2-5% to your total purchase cost.

Can I get help with my down payment?

Yes, options include: RRSP Home Buyers' Plan, First-Time Home Buyer Incentive, family gifts (with proper documentation), government programs, and employer assistance programs. Some provinces also offer additional incentives.

What if I can't afford a 20% down payment?

You can still buy with 5% down, but you'll pay CMHC insurance. Consider saving longer, using RRSP funds, getting family help, or looking at less expensive properties. The key is ensuring you can afford the monthly payments.

2025 Canadian Land Transfer Taxes by Province

🏦 Provincial Land Transfer Tax Rates

Ontario
1.50%
Rebate: 0.40%
British Columbia
1.00%
Rebate: 0.50%
Alberta
0.40%
Quebec
0.75%
Manitoba
0.50%
Saskatchewan
0.20%
Nova Scotia
0.50%

💰 First-Time Buyer Benefits

Ontario Rebates

  • • Provincial rebate: Up to $4,000
  • • Municipal rebate: Up to $4,475 (Toronto)
  • • Total potential savings: $8,475

BC Rebates

  • • Provincial rebate: Up to $8,000
  • • Available for homes under $500,000
  • • Must be first-time buyer

Other Provinces

  • • Most provinces have lower rates
  • • Alberta: 0.4% (lowest)
  • • Saskatchewan: 0.2% (lowest)
  • • Check local programs

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