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Making a down payment is the first step to securing the purchase of a home. How much do you need for one? Learn more in the MoneySense Glossary.
A down payment is the initial lump sum paid when purchasing a home. The larger the down payment, the smaller the mortgage required. These are the minimum down payments in Canada:
| Purchase price of home | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $999,999 | 5% of the first $500,000 of the purchase price; 10% of the amount of the purchase price above $500,000 |
| $1 million or more | 20% of the purchase price |
Example: “To reduce their risk of loss, most lenders require larger down payments from home buyers who are self-employed or have low credit scores.”
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