If you’re saving up to buy your first home, chances are you’ve asked yourself, “How much do I actually need for a down payment?”
The short answer: it depends on your home’s price — but there’s a bit more to it. Let’s break it down so you know exactly what to expect (and how to get there faster).
🏦 The Minimum Down Payment Rules in Canada
The federal government sets minimum down payment requirements based on your home’s purchase price:
| Purchase Price | Minimum Down Payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 – $999,999 | 5% on the first $500,000 + 10% on the remainder |
| $1,000,000 or more | 20% of the purchase price (no CMHC insurance allowed) |
💡 Example: If you’re buying a $650,000 home →
- 5% of $500,000 = $25,000
- 10% of $150,000 = $15,000
➡️ Total minimum down payment: $40,000
🏡 What Happens if You Put Down Less Than 20%?
If your down payment is under 20%, you’ll need mortgage default insurance (through CMHC, Sagen, or Canada Guaranty).
This protects your lender if you default, but it also allows buyers to purchase with a smaller down payment. The insurance premium is added to your mortgage and depends on the down payment percentage.
| Down Payment | CMHC Premium |
|---|---|
| 5%–9.99% | 4.00% of mortgage amount |
| 10%–14.99% | 3.10% |
| 15%–19.99% | 2.80% |
💡 Pro tip: Even a few extra percentage points down can save you thousands in insurance costs.
🧾 Where Can Your Down Payment Come From?
Accepted down payment sources include:
- Personal savings
- RRSP withdrawals through the Home Buyers’ Plan (HBP)
- Gifted funds from immediate family
- Proceeds from another property
- TFSA or investment accounts
Make sure funds are traceable — lenders will ask for proof that the money’s been in your account for at least 90 days (the “90-day rule”).
💡 How to Speed Up Your Savings
Here are some Alberta-friendly ideas to hit your down payment goal faster:
- Set up automatic transfers into a “home fund” account
- Reduce high-interest debt before saving
- Explore first-time buyer incentives (like shared equity programs)
- Invest short-term in high-interest savings or GICs
✉️ Ready to See What You Qualify For?
Whether you’ve saved $5,000 or $50,000, there’s a path to homeownership. Our ARIVL team works with trusted mortgage brokers who can show you exactly how far your down payment can take you — and what programs can help fill the gap.
📩 Email hq@arivl.ca or call Jakie at 780-224-5566 to connect with one of our partners.
Your real estate adventure starts here — let’s make sure your savings work for you!
ARIVL: Your Real Estate Adventure Awaits!