How Much Do You Need for a Down Payment in Ontario?
Buying your first home in Ontario? One of the biggest questions I get asked is: “How much do I actually need for a down payment?” If you're wondering the same thing, you're in the right place. Let’s break it down in plain language.
What is a Down Payment?
A down payment is the amount of money you pay upfront when buying a home. The rest is usually covered by a mortgage loan. In Ontario (and across Canada), the amount you need depends on the purchase price of the home.
Minimum Down Payment Requirements in Ontario
Here’s what you need to know:
| Home Price | Minimum Down Payment |
| $500,000 or less | 5% of the purchase price |
| $500,000 to $1.5 million | 5% of the first $500,000 + 10% of the rest |
| $1.5 million or more | 20% of the purchase price |
Example:
If you're buying a home for $800,000, you'll need:
| 5% of $500,000 | = $25,000 |
| 10% of the remaining $300,000 | = $30,000 |
| -------------- | |
| Total down payment | = $55,000 |
Why Your Down Payment Matters
Your down payment affects:
| >> How much mortgage you need to borrow |
| >> Whether you need to pay mortgage loan insurance |
| >> Your monthly payments |
| >> Your ability to qualify with lenders |
If your down payment is less than 20%, you’ll be required to purchase mortgage loan insurance through providers like CMHC.
First-Time Buyer? There's Help Available
If you're a first-time homebuyer, there are several programs to help you reach your down payment goal faster:
| >> First Home Savings Account (FHSA) |
| >> RRSP Home Buyers' Plan |
| >> First-Time Home Buyer Incentive |
These programs can reduce your upfront costs or allow you to borrow from your savings tax-free.
How to Start Saving for a Down Payment
Saving for a down payment can feel overwhelming, but here are a few tips to help you get there:
| >> Set a clear savings goal based on your home budget |
| >> Automate savings each month |
| >> Explore gifts from family (lenders allow this with proper documentation) |
| >> Cut back on high-interest debt |
Need Help Figuring Out Your Budget?
I work with buyers all over Ontario to help them understand how much they need to buy a home and create a plan to get there. Whether you're months away or just starting to dream, I’m here to help you feel confident and informed every step of the way.
📩 Get in touch for a free down payment planning session or to ask questions—no pressure, just solid advice.
CENTURY 21 Leading Edge Realty Inc. Brokerage
INFO & SERVICES
CENTURY 21 Leading Edge Realty Inc. Brokerage
408 Dundas St W, Whitby, ON L1N2M7
(905) 666-0000
INFO & SERVICES
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