How the minimum down payment works
Canada uses a tiered minimum. The first $500,000 of the price needs 5%, the portion from $500,000 to $1,500,000 needs 10%, and homes priced $1,500,000 or more need a flat 20%. The December 2024 changes raised the insurable ceiling from $1 million to $1.5 million, so more buyers can now get an insured mortgage with less than 20% down.
When mortgage default insurance applies
Any down payment under 20% on a home below $1,500,000 requires default insurance from CMHC, Sagen, or Canada Guaranty. The premium runs from 2.8% at 15% down to 4.0% at 5% down, and it is added to your mortgage principal. Cross 20% and the mortgage becomes conventional with no premium at all.
Budget for more than the down payment
Closing costs — land transfer tax, legal fees, title insurance — typically run 1.5% to 4% of the price on top of the down payment. Keeping a record of your home from day one, including what you paid and what you own, is the cheapest insurance a homeowner has. That is what Habyn property records are built to keep, free for homeowners on the Home plan.