How Much Do I Need for a Down Payment in Ontario?

If you're starting to think about buying a home, the down payment question is usually the first thing that stops people in their tracks. Here's the real, straightforward answer, no guesswork.

The Minimum Down Payment in Canada

Canada's minimum down payment isn't a flat percentage; it scales with your home's purchase price:

• Homes under $500,000: minimum 5% down

• Homes between $500,000 and $999,999: 5% on the first $500,000, plus 10% on the portion above that

• Homes at $1,000,000 or more: minimum 20% down

So on a $450,000 home in Hamilton, your minimum down payment would be $22,500. On a $650,000 home in Burlington, it works out to $40,000 (5% of the first $500K, plus 10% of the remaining $150K).

Why Putting Down Less Than 20% Matters

If your down payment is under 20% of the purchase price, you're required to carry mortgage default insurance (commonly through CMHC). This adds a premium to your mortgage, but it's also what makes it possible to buy with a smaller down payment in the first place. It's not a bad thing, it's simply part of the math.

What This Actually Looks Like in Practice

A lot of buyers assume they need 20% saved before they can even start looking, and that assumption alone keeps people renting years longer than they need to. In reality, plenty of first-time buyers in Hamilton, Burlington, and Ancaster purchase with 5-10% down and build equity from there.

A Few Things Worth Planning For Beyond the Down Payment

• Closing costs typically run 1.5-4% of the purchase price (legal fees, land transfer tax, title insurance)

• First-time buyers may qualify for a land transfer tax rebate, which can meaningfully offset that cost

• Keep a small buffer beyond your down payment for moving costs and immediate home needs

Want to Know What You Actually Qualify For?

Down payment math is only half the picture, your specific budget depends on income, existing debt, and current rates. I'm happy to walk through your numbers directly, no pressure, just clarity.

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