One of the first questions Ontario homebuyers ask is, “How much down payment do I need for a house in Ontario?” The answer isn't the same for everyone. The minimum can be as low as 5%, depending on the home's purchase price. This guide breaks down the 5% rule, the 10% rule and the 20% rule, explains when mortgage insurance comes into play, and looks at savings programs that can help you get there faster.
How Much Down Payment for a House in Ontario?
The minimum down payment in Ontario follows federal rules set by the Government of Canada.
Purchase Price | Minimum Down Payment |
$500,000 or less | 5% of purchase price |
Over $500,000 to under $1.5M | 5% on first $500K + 10% on the remainder |
$1.5 million or more | 20% of purchase price |
Homes under $1.5 million may qualify for an insured mortgage. Putting less than 20% down generally means you'll need mortgage loan insurance, also called CMHC insurance.
How the 5%, 10%, and 20% Down Payment Rules Work
It is easier to see the sliding-scale structure with real numbers:
- $500,000 home → 5% = $25,000 minimum
- $800,000 home → 5% of $500K ($25,000) + 10% of $300K ($30,000) = $55,000 minimum
- $1,000,000 home → 5% of $500K ($25,000) + 10% of $500K ($50,000) = $75,000 minimum
- $1,500,000 home → 20% = $300,000 minimum
To find your own need, do 5% of the first $500,000 and 10% of anything above that up to $1.5 million. Homes of $1.5 million and up will face the full 20%.
Is 20% Down Required to Buy a House in Ontario?
No. Eligible buyers in Ontario, Mississauga, Toronto, Brampton, and across the GTA can purchase with the applicable minimum down payment percentage. Many buyers still aim for 20%, though mainly to avoid paying mortgage default insurance and to reduce their overall mortgage amount. The 20% threshold is significant, but it's not a legal requirement for most buyers.
What Happens If You Put Less Than 20% Down?
Usually, if you make a down payment of less than 20%, you’ll need to buy mortgage loan insurance. If you don’t make your loan payments, this insurance protects the lender, not you. Premiums are calculated based on the loan-to-value ratio and are usually added directly to your mortgage balance. Generally, you’ll pay less cash upfront with a smaller down payment, but your overall borrowing costs over the long run will be higher.
Important 2026 Mortgage and Homebuyer Updates
There were several major policy changes that came into effect in late 2024 and into 2025-2026 that affect Ontario homebuyers:
- $1.5M insured mortgage cap : The purchase-price cap for insured mortgages increased from $1 million to $1.5 million, opening eligibility for buyers in higher-priced markets like Oakville, Markham, and Vaughan.
- 30-year amortizations : Eligible first-time homebuyers and buyers of new builds can now access 30-year insured mortgage amortization periods. Monthly payments drop, but total interest paid increases.
- GST/HST New Housing Rebate : A new rebate offers eligible first-time buyers up to $50,000 in GST/HST relief on qualifying new homes priced up to $1 million, with partial benefits available between $1 million and $1.5 million.
- Home Buyers' Plan repayment relief : The RRSP Home Buyers' Plan (HBP) now allows withdrawals of up to $60,000. Temporary repayment relief applies to qualifying first withdrawals made between 2026 and 2028.
How First-Time Buyers Can Save for Their Down Payment
Two registered accounts can help you save your down payment faster:
- First Home Savings Account (FHSA): Contribute up to $8,000 per year with a lifetime limit of $40,000. First-time homebuyers get 100% tax-free.
- RRSP Home Buyers’ Plan: Borrow up to $60,000 from your RRSP to help you buy a qualifying home. Importantly, eligible buyers could potentially use an FHSA withdrawal and an HBP withdrawal for the same home.
Note: The former First-Time Home Buyer Incentive program has been discontinued and is no longer available.
How Much Down Payment Should You Actually Aim For?
- 5%–10%: Lower upfront requirement, mortgage insurance generally applies.
- 20%: Generally avoids mortgage default insurance, reduces your total mortgage, but requires significantly more cash upfront.
- More than 20%: Can reduce borrowing costs further..
Final Thoughts: Choosing the Right Down Payment for Your Ontario Home
The right down payment depends on your budget, savings, and long-term goals—not just the minimum requirement. Use Serik Realty’s Mortgage Calculator to compare your options and estimate monthly payments.
Ready to buy? Explore houses for sale across the GTA and Ontario and find a home that fits your budget. You can also take advantage of Serik Realty’s up to 1.5% cashback offer on eligible purchases. Start your home search today with Serik Realty and take the next step toward owning your Ontario home.
