Minimum Down Payment on a House in Canada
2023-02-13
In Canada, people must pay the down paymment to buy a house for the mortgage according to the Bank Act.
There is minimum down payment requirement depends on the purchase price of the house.
According to the Canada government information, the minimum down payment requirement is:
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Minimum down payment requirement:
| Home Price | Minimum down payment |
|---|---|
| <=$500,000 | 5% of the purchase price |
| $500,000 - $999,999 | 5% of $500,000 plus 10% of the remaining amount |
| >=$1 million | 20% of the purchase price |
For example, if you buy a house for $700,000, your minimum down payment would be 5% of $500,000 ($25,000) plus 10% of $200,000 ($20,000), which equals $45,000.
Note: The average house price in Toronto is about 1 million in 2022.
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