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The minimum down payment is not a single percentage: it is calculated in tiers.

How much you actually need, by price and by use of the property. The tiers, the sources of funds accepted, and what the twenty percent threshold triggers.

The CompareTaux teamReading: 6 min

A tiered calculation, not one percentage

The minimum applies in price tiers: one percentage on the first tier, a higher percentage on the portion above. Above a certain price, mortgage insurance is no longer available and a twenty percent minimum applies to the whole amount.

The twenty percent threshold

Below twenty percent down, the mortgage must be insured: it is a high-ratio loan. At twenty percent or more, the loan is conventional, with no insurance premium, but qualification criteria still apply.

A home, a cottage, a rental building

Minimums differ depending on whether the property is your principal residence, a second home, or an income property. A multi-unit building not occupied by the owner generally requires a markedly larger down payment.

The source of funds must be shown

The lender requires traceability: several months of statements, a gift letter for family funds, a withdrawal from a registered plan. A large unexplained deposit delays a file, sometimes fatally.

The down payment is not the only cash needed

On top of your equity come the closing costs: transfer duties, notary, inspection, appraisal, adjustments. A buyer who puts everything into the down payment comes up short at signing.

What the tiers do not tell you

Meeting the minimum does not mean qualifying: income, debt ratios, and credit history decide the rest. Have both sides validated together, not one after the other.

No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.