The federal tier system
The first $500,000 of any home purchase requires 5% down. So a $400,000 home needs $20,000 (5%). A $500,000 home needs $25,000 (5%).
Between $500,000 and $1.5M, you need 5% on the first $500K plus 10% on everything above. A $700,000 home needs $25,000 + $20,000 = $45,000. A $1,000,000 home needs $25,000 + $50,000 = $75,000.
At $1.5M and above, 20% is required on the entire price. A $1.5M home needs $300,000 down. There's no insured option for these — they're all conventional mortgages, no CMHC available.
CMHC insurance: when it kicks in
Any down payment under 20% triggers mandatory CMHC mortgage default insurance (or its equivalent from Sagen or Canada Guaranty). Premium ranges from 2.8% (15-20% down) to 4.0% (5% down).
The premium is added to your mortgage balance, not paid upfront. So a $25,000 down payment on a $500,000 home means a $475,000 mortgage + ~$19,000 CMHC = $494,000 actual mortgage to amortize.
Over a 25-year mortgage at typical rates, that $19,000 premium plus interest on it adds up to about $30,000 of extra cost. A useful number to know when deciding whether to wait and save more.
Down payment sources
Most lenders want to see your down payment in your bank account for at least 90 days, traceable to a confirmed source. Acceptable sources: savings, RRSP withdrawal under the Home Buyer's Plan ($60,000 lifetime), gifted from immediate family, sale of an investment.
Borrowed down payments (line of credit, family loan) require the Flex Down program — fewer lenders, slightly higher rates, but doable. See our Flex Down Mortgage page if your down payment is borrowed.
If you have nothing saved, see our Skip the Down Payment program — federally-permitted zero-down purchases for borrowers with strong credit and stable income.