01
FHSA
First Home Savings Account. First-time buyers can contribute up to $8,000 a year, to a $40,000 lifetime limit. Contributions are tax-deductible and qualifying withdrawals for a first home are tax-free.
The Ontario Home Buyer Guide / 03 of 05
How Much Down Payment Do I Need in Ontario?
The minimum you need at every price point, what happens under 20% down, and where the money can come from.
Ontario Home Buying Guide | Updated October 2026
The short answer
In Ontario you need at least 5% of the first $500,000 of the price, plus 10% of the portion from $500,000 to $1.5 million. Homes at $1.5 million or more need 20% down. Under 20% down, your mortgage must be insured, which adds a one-time premium to your loan.
Minimum down payment by purchase price
These rules are set federally and apply the same way across Ontario, from Toronto to Durham Region.
| Purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% of the price |
| $500,000 to $1,499,999 | 5% of the first $500,000 + 10% of the rest |
| $1,500,000 and up | 20% of the price |
What that looks like in dollars
| Price | Minimum down | As a % | 20% down |
|---|---|---|---|
| $500,000 | $25,000 | 5% | $100,000 |
| $750,000 | $50,000 | 6.67% | $150,000 |
| $900,000 | $65,000 | 7.22% | $180,000 |
| $1,200,000 | $95,000 | 7.92% | $240,000 |
| $1,500,000 | $300,000 | 20% | $300,000 |
Down Payment Calculator
See What Your Down Payment Means.
Enter a price and what you have saved. Nothing is sent anywhere.
Minimum down payment
$65,000
Your down payment is 7.22% of the price.
- Mortgage before insurance
- $835,000
- Mortgage insurance premium
- $33,400 (4%)
- Ontario tax on premium (cash at closing)
- $2,672
- Total mortgage
- $868,400
Saving $115,000 more would reach 20% and remove the premium.
Illustration only, using standard insurer premium rates. Your lender and insurer confirm final eligibility and costs.
Under 20% down: what mortgage insurance costs
With less than 20% down, your mortgage must be insured against default. The premium is a percentage of your mortgage, added to the loan rather than paid up front. The smaller your down payment, the higher the rate.
| Down payment | Premium (on the mortgage) |
|---|---|
| 5% to 9.99% | 4.00% |
| 10% to 14.99% | 3.10% |
| 15% to 19.99% | 2.80% |
| 20% or more | No insurance needed |
- Ontario adds 8% sales tax on the premium. It can’t be added to the mortgage, so budget it as cash at closing.
- A 30-year amortization is available on insured mortgages for first-time buyers and for buyers of newly built homes. It lowers the monthly payment and adds 0.20% to the premium.
- Insurance is not always bad. Insured mortgages often get some of the lowest rates. Getting into the market sooner can matter more than reaching 20%.
Where your down payment can come from
Lenders want to see where the money came from, usually with about 90 days of account history. Common sources:
02
RRSP Home Buyers' Plan
Withdraw up to $60,000 per person from your RRSP for a first home, then repay it to your RRSP over 15 years. A couple can each use it, and it can be combined with an FHSA.
03
Gifts and savings
Savings, investments, proceeds from selling a current home, and gifts from immediate family. Gifts usually need a signed letter confirming they do not have to be repaid.
Program limits as of October 2026. Confirm current rules and your eligibility with the Canada Revenue Agency or a financial advisor.
Your down payment is not your only cash cost
Lenders typically want to see that you have money set aside for closing costs on top of the down payment, often about 1.5% of the purchase price. That covers Ontario land transfer tax (and Toronto’s municipal tax inside the city), legal fees, title insurance, adjustments, a home inspection and the tax on any insurance premium. First-time buyers may qualify for a land transfer tax refund.
Want to see how your down payment fits your overall budget? Run the numbers in Part 1: How Much House Can I Actually Afford in Ontario?
Buying new construction? Deposits work differently.
With a pre-construction home, you usually pay deposits to the builder in stages over months or years instead of all at once. Those deposits are normally credited toward your down payment when the home closes. Each builder sets its own schedule, so it pays to compare. Browse current Durham Region new builds or all GTA new construction projects, and request a project package to see each deposit structure.
Mortgage Partner
Not Sure Your Down Payment Is Enough?
A licensed mortgage professional can review your savings, confirm what lenders will accept as a down payment source, and help you plan the next step.
Maryann Ambat is an independent mortgage agent with Tango Financial, separate from Rochester Realty Inc. and Royal LePage Signature Realty. The link opens an external mortgage application/assessment provided by the mortgage partner. Your calculator figures are not sent.
Maryann Ambat
Mortgage Agent · Tango Financial (Ontario)
Your Real Estate Advisor
Know Your Number? Let’s Find the Right Home.
Rochester Realty Inc. helps buyers explore resale homes, new-construction communities and opportunities across Durham Region, the GTA and surrounding areas.
Stephen Rochester
Rochester Realty Inc. · Royal LePage Signature Realty
FAQ
Common Down Payment Questions
What is the minimum down payment in Ontario?
Down payment minimums are set federally and apply across Canada, including Ontario. You need 5% of the first $500,000 of the purchase price and 10% of the portion between $500,000 and $1.5 million. At $1.5 million and above, the minimum is 20%.
How much down payment do I need for a $900,000 house?
The minimum is $65,000: 5% of the first $500,000 ($25,000) plus 10% of the remaining $400,000 ($40,000). With less than 20% down, mortgage insurance is added to the mortgage. Putting 20% down ($180,000) avoids the insurance premium.
Do I need 20% down to buy a house in Ontario?
No, not for homes under $1.5 million. You can buy with as little as the minimum down payment, but the mortgage must be insured. The premium is added to your mortgage, and Ontario sales tax on the premium is paid in cash at closing.
Can my down payment be a gift from family?
Many lenders accept a gifted down payment from an immediate family member, usually with a signed gift letter confirming the money does not have to be repaid. Each lender sets its own rules, so confirm with your mortgage professional early.
Can I use my FHSA and RRSP together for a down payment?
Yes. First-time buyers can withdraw from a First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan for the same qualifying purchase, as long as they meet each program's conditions. Confirm the current limits and rules with the Canada Revenue Agency or your financial advisor.
Is a new construction deposit the same as a down payment?
Deposits paid to a builder are usually credited toward your down payment on closing. GTA builders often spread deposits over several months or years. The deposit schedule is set by each builder and should be reviewed with your lawyer before signing.
General information, not financial advice. Mortgage approval, insurance and program eligibility are subject to lender, insurer and government rules.
The Ontario Home Buyer Guide
More in the Series
Part 1
How Much House Can I Actually Afford in Ontario?
Read now
Part 2
Is Now a Good Time to Buy a House in Ontario?
Coming Soon
Part 3
How Much Down Payment Do I Need in Ontario?
Current
Part 4
Resale vs. New Construction: Which Should I Buy?
Coming Soon
Part 5
What Income Do I Need to Buy a $900,000 Home?
Coming Soon