Down Payment Calculator
Canadian Down Payment Calculator
An interactive tool to understand down payments, CMHC insurance, and the total cost of buying a home in Canada.
Your Financial Snapshot
Down Payment Comparison
See how increasing your down payment impacts your total loan amount for a home at your selected price.
Learn the Essentials
In Canada, the minimum down payment is not a single percentage but follows a tiered system based on the home’s purchase price:
For homes up to $500,000
The minimum down payment is a straight 5% of the purchase price.
For homes between $500,000 and $1,499,999
You pay 5% on the first $500,000, plus 10% on the portion of the price above $500,000.
For homes $1,500,000 or more
The minimum down payment is a flat 20% of the purchase price.
CMHC mortgage loan insurance (or mortgage default insurance) is mandatory in Canada if your down payment is less than 20% of the home’s purchase price. This is called a “high-ratio” mortgage.
Crucially, this insurance protects the lender, not you. If you were to default on your mortgage, the insurance pays the lender back. In exchange for you paying this insurance premium, the lender is willing to give you a mortgage with a smaller down payment at a competitive interest rate.
- Required when: Down payment is less than 20%.
- Not required when: Down payment is 20% or more (this is a “conventional” mortgage).
- Not available for: Homes priced at $1,500,000 or more.
The premium is a percentage of your mortgage loan amount (not the home price). The smaller your down payment, the higher the percentage.
| Down Payment (% of Home Value) | CMHC Premium Rate (% of Loan) |
|---|---|
| 5% to 9.99% | 4.00% |
| 10% to 14.99% | 3.10% |
| 15% to 19.99% | 2.80% |
Payment Options
- Add to Mortgage: Most common. The premium is added to your total mortgage principal. You pay it off over the life of the loan, but this means you also pay interest on the premium.
- Pay Upfront: You can pay the full premium in cash at closing. This avoids paying interest on it.
Provincial Sales Tax (PST)
In Ontario, Quebec, Manitoba, and Saskatchewan, you must pay PST on your CMHC premium. This tax cannot be added to your mortgage and must be paid in cash at closing. Our calculator includes this important, often-overlooked cost.
As of December 15, 2024, the federal government introduced key changes to make homeownership more accessible:
- Increased Insured Mortgage Limit: The maximum purchase price for a home to be eligible for CMHC insurance was increased from $1 million to $1.5 million. This helps buyers in more expensive markets.
- 30-Year Amortization for Insured Mortgages: For first-time homebuyers and anyone purchasing a newly constructed home, the maximum amortization period for an insured mortgage (less than 20% down) is extended from 25 to 30 years. This lowers monthly payments, improving cash flow. Our calculator will allow this option if you check the relevant boxes.
These changes are designed to help more Canadians enter the housing market, particularly first-time buyers and those supporting the construction of new housing supply.