Your down payment affects your mortgage amount, your monthly payment and whether you pay insurance. Here is how it works for buyers in Ottawa and across Canada.
Minimum down payment examples
| Purchase price | Minimum down payment |
|---|---|
| $400,000 | $20,000 (5%) |
| $500,000 | $25,000 (5%) |
| $650,000 | $40,000 ($25,000 on the first $500,000 plus $15,000 on the rest) |
| $1,000,000 | $75,000 ($25,000 plus $50,000) |
| $1,500,000 or more | 20% of the price |
Why 20% matters
- No default insurance premium. With less than 20% down, the premium is added to your mortgage. See our insurance premium guide.
- More lender choice. Some lenders and products are only available with at least 20% down.
- Lower monthly payment because you borrow less.
Where a down payment can come from
- Your own savings and investments
- Your First Home Savings Account (FHSA) and RRSP Home Buyers’ Plan, if you qualify. See FHSA vs HBP.
- A gift from an immediate family member, with a signed gift letter
- Proceeds from the sale of another property
Borrowed money for a down payment is not accepted by most lenders, unless it is a specific product with additional risk.
Don’t forget closing costs
You also need cash for closing costs, commonly 1.5% to 4% of the price. Read the Ottawa closing costs guide and use the land transfer tax calculator.
Frequently asked questions
Can I buy a home in Ottawa with 5% down?
Yes, if you qualify and the price is within the limits. You will need default insurance and must pass the stress test.
Is 20% down required in Canada?
No, but with less than 20% you must pay mortgage default insurance. The minimum is 5% on the first $500,000 of the price.
Does a bigger down payment get a better rate?
Often yes. Insured and lower loan-to-value mortgages tend to get better pricing, though rates also depend on the lender and market.
Find out what down payment fits your plan
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