Down payment rules in Canada

Minimum down payments, gifted funds, and when insurance is required.

By Pragmatic Mortgage Editorial TeamReviewed by Licensed Broker Team6 min readUpdated 2025-02-01

Table of contents

Minimum down payment thresholds

Canada uses tiered minimums based on purchase price. Above $1M, mortgage default insurance is not available and 20% down is required.

Gifted down payments are permitted with the right documentation. Borrowed down payments are generally not allowed for insured files.

Down payment is only part of the cash you need. Budget for land transfer tax, legal fees, and adjustments.

Is 5% down still allowed?

Yes for eligible purchase prices under the applicable threshold, but insurance is required.

Can I use RRSP funds?

Yes, the Home Buyers' Plan allows eligible withdrawals for a first purchase.

Plan your next step

Create a free account to save this guide, upload documents, and keep your broker team in the loop.