🏡 How Much Do You Actually Need for a Down Payment in Ontario?
When it comes to buying a home, one of the biggest questions I get from first-time buyers is:
“How much do I actually need for a down payment?”
Let’s break it down clearly — so you can plan with confidence.
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💰 What Is a Down Payment?
A down payment is the money you put upfront when buying a home. The rest of the purchase price is covered by your mortgage. The more you put down, the less you’ll need to borrow — and the lower your monthly payments.
📊 Minimum Down Payment Rules in Ontario (2025)
According to Canadian mortgage guidelines, here’s what you need:
| Purchase Price | Minimum Down Payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $999,999 | 5% on the first $500,000 + 10% on the rest |
| $1.5 million or more | 20% of the purchase price (no exceptions) |
⚠️ If You Put Less Than 20% Down...
You’ll need to pay for mortgage loan insurance through CMHC or another provider. This protects the lender — not you — in case of default.
And keep in mind, lenders may require a larger down payment if:
You’re self-employed
You have a lower credit score
You have limited income history
💡 Why Planning Your Down Payment Matters
A lot of buyers focus only on the home price — but smart mortgage planning should come first.
✅ Knowing your numbers early helps set a realistic budget
✅ It keeps your monthly payments manageable
✅ It improves your chances of mortgage approval
🧮 Want to Run the Numbers?
As both a Realtor and a Certified Residential Appraiser (CRA, P.App), I’ll walk you through your affordability, help you understand what lenders expect, and guide you to properties that fit your budget.
📲 Book a free consultation and let’s get you prepped for the market.
📍 Related Blogs You May Find Helpful:
Top 5 Mistakes First-Time Buyers Make — And How to Avoid Them
Getting Pre-Approved: The Move That Separates Serious Buyers from the Rest
Monthly Mortgage Payment Breakdown — Principal, Interest, Taxes
📍 Geotag: Toronto, Ontario
📸 Follow me on Instagram: @jasjitlitt
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JASJIT LITT CRA. P.App M.Sc
BROKER
Royal Canadian Realty
📞 647-284-9688
🌐 www.listwithlitt.ca
