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When it comes to buying a home, your down payment is a big piece of the puzzle. It affects your price range, your monthly mortgage payment, and the amount of interest you pay over time.

When buying a home, the purchase price is covered through two main financial sources: Your down payment and your mortgage. But how much do you really need to put down? The short answer is, it depends

  • For properties valued at less than $500,000 you can use 5% down.
  • For properties valued between $500,000 and $1 million, the minimum down payment for new insured mortgages increased from 5% to 10% for the portion of the house price above $500,000.
  • And for property values over $1 million still require a 20 percent down payment.

 
Here’s how it works

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Use our Mortgage Payment Calculator to input different mortgage amounts (based on different down payment scenarios) and see how your monthly payments and total interest costs shake out.


Calculate Your Required Down Payment Under The Canadian Rules
Here’s How it Works
Price Tier: Up to $500,000
Down Payment Required: 5% of house price
Price Tier: $500,001 to $999,999
Down Payment Required: 5% of first $500k + 10% portion of house price above $500k
Price Tier: $1,000,000+
Down Payment Required: 20% of house price
What Does This Look Like in Practice? Read on to see required down payment calculations in action — based on your purchase price tier.
Homes Below $500,000
You need a minimum down payment of 5% of the purchase price. Regardless of home price, a down payment of less than 20% means you’ll require mortgage default insurance.1
Calculate It

  • Home Price $400,000
  • Down payment $20,000

 

Price Tier: Up to $500,000
5% x $400,000 (HOME PRICE) = $20,000 Down Payment
Homes Between $500,001 and $1 million
Homes between $500,001 and $1 million — a common price range for “starter” homes in the Vancouver and Toronto housing markets.1
Calculate It
  • Home Price: $750,000
  • Down Payment: $50,000

 

Price Tier: $500,001 to $999,999
5% x $500,000 + 10% x $250,000 (HOME PRICE) = $50,000 Down Payment
On a $750,000 home, you’ll need $50,000 for your down payment. This is based on 5% of $500,000, plus another 10% of the amount over $500,000.
So How Much More Do We Need to Put Down?
Increase in down payment required on a $750,000 home is $12,500 ($50,000 is the required down payment).
Homes Over $1 million
If you’re buying a home over $1 million in Canada, you’ll still need at least $20% down.1
Calculate It
  • Home Price: $1,000,000
  • Down Payment: $200,000

 

Price Tier: $1,000,000+
20% x $1,000,000 (HOME PRICE) = $200,000 Down Payment
Average Home Prices
Metro Vancouver
Average Detached Home Price as of January, 2021: $1,576,8002
City of Toronto
Average Detached Home Price as of January 2021: $1,301,0003
Table of Down Payments by Purchase Price
Under the Canadian minimum down payment rules, this is how much you must put down when buying a home.
Purchase PriceMinimum Down Payment Price
<$500,000<$25,0005% of purchase price
$600,000$35,000 5% of first $500K + 10% of portion of purchase price above $500K
$700,000$45,0005% of first $500K + 10% of portion of purchase price above $500K
$800,000$55,0005% of first $500K + 10% of portion of purchase price above $500K
$900,000$65,0005% of first $500K + 10% of portion of purchase price above $500K
$999,000$75,0005% of first $500K + 10% of portion of purchase price above $500K
$1,000,000+$200,00020% of purchase price
1. https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html
2. https://www.rebgv.org/market-watch/monthly-market-report/january-2021.html
3. https://trreb.ca/files/market-stats/home-price-index/TREB_MLS_HPI_Public_Tables_0121.pdfThis article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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