Do You Actually Need 20% Down?
Short answer: no. The legal minimum in Canada is 5% on the first $500,000 of your home's price. For anything over $500,000, you put down 5% on that first half-million, then 10% on the rest.
So if you're buying a $300,000 home, your minimum down payment is $15,000 (5% of $300,000). For a $700,000 home, you'd need at least $45,000 — that's $25,000 for the first $500,000 and $20,000 for the remaining $200,000.
Can You Put Just 5% Down?
You can. But if your down payment is less than 20%, you'll pay for mortgage default insurance — a policy that protects the lender if you stop making payments. The cost varies depending on how much you put down and what you're paying for the home.
What's the Average Down Payment in Canada?
According to the Canadian Mortgage and Housing Corporation (CMHC), the average sits around 9%. Many buyers put down more than the minimum to skip the insurance premium, lower their monthly payment, and build equity faster.
How Much for a $300,000 House?
At minimum, $15,000 (5% of $300,000). If you want to avoid mortgage default insurance, you'd need $60,000 — the full 20%.
5% or 20%: Which Should You Choose?
It depends on what you've saved and where you want to land. A 20% down payment means lower monthly costs, no insurance premium, and faster equity growth. If you've got the savings, it's a strong move.
A 5% down payment gets you in sooner with less cash up front, but you'll carry the insurance cost in your monthly payment. If saving another few years isn't realistic — or if you'd rather deploy that cash elsewhere — 5% can absolutely work.
What If You Don't Have 20%?
You've got two paths: keep saving until you hit 20%, or move ahead with 5% down and pay for mortgage default insurance. The insurance adds to your monthly payment, but it lets you buy now instead of waiting.
Is 5% Down Actually Okay?
It's more than okay — it's how a lot of people get started. You'll pay mortgage default insurance, which bumps your monthly cost, but it's a legitimate, legal, and often smart way to get into a home when you're ready.
The right down payment is the one that fits your money, your timeline, and your goals. If you want to walk through the math on your situation — what the insurance will actually cost, how the payments shake out, what makes sense for you — that's exactly the conversation we're built for.
