How Much Do I Need for a Down Payment in Ontario?
“How much do I need saved up?” is usually the first real question every buyer asks me. And the honest answer is: it depends on the price of the home you’re buying.
Ontario’s minimum down payment isn’t one flat percentage. It moves in tiers. Get the tiers wrong, and your whole savings plan can be off by tens of thousands of dollars.
Here’s exactly how it works.
The Down Payment Tiers in Ontario
| Purchase Price | Minimum Down Payment |
|---|---|
| $500,000 or less | 5% |
| $500,000 – $1,499,999 | 5% on first $500K + 10% on the rest |
| $1,500,000+ | 20% |
That middle tier trips people up the most, so let’s break it down with real numbers.
A $600,000 home doesn’t need 5% down across the board. It needs 5% on the first $500,000, and 10% on everything past that.
Worked Example: A $600,000 Home
Say you’re buying a home for $600,000. Here’s how the minimum down payment is actually calculated:
- 5% on the first $500,000 = $25,000
- 10% on the remaining $100,000 = $10,000
- Total minimum down payment = $35,000
That’s $35,000, not $30,000 — the number you’d get if you simply multiplied $600,000 by 5%. This blended calculation is exactly why so many buyers underestimate what they actually need to save.
| Purchase Price | Minimum Down Payment |
|---|---|
| $450,000 | $22,500 (5%) |
| $600,000 | $35,000 (blended) |
| $1,600,000 | $320,000 (20%) |
Why the Rules Change at $1.5 Million
Once a home is priced at $1.5 million or more, CMHC-insured mortgages are no longer available. That means you need a conventional mortgage, and conventional mortgages require at least 20% down.
Below $1.5 million, mortgage insurance from CMHC (or a similar insurer) covers the lender’s added risk on a smaller down payment — which is exactly why you’re allowed to buy with less than 20% down in the first place.
If you want to understand how lenders evaluate what you can afford on top of your down payment, our GDS and TDS guide walks through the qualification math in plain language.
Where the Money Can Come From
Down payments don’t have to come purely out of pocket. A few tools worth knowing about:
- FHSA (First Home Savings Account): Up to $8,000 per year, $40,000 lifetime maximum. Contributions are tax-deductible and withdrawals are tax-free when used for a qualifying home purchase.
- Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP ($120,000 per couple), repaid over 15 years.
- First-time buyer land transfer tax rebates: While these don’t go toward your down payment directly, they reduce your closing costs — freeing up more of your savings for the down payment itself. Our land transfer tax rebate guide breaks down exactly how to claim it.
Many first-time buyers combine an FHSA and the HBP to get to their down payment faster than they expected.
Want to see what your monthly payment would actually look like at different down payment amounts?
Try the Mortgage Calculator →Key Takeaways
- 20% down is only required at $1.5 million and above. Below that, you have options.
- The $500,000–$1,499,999 tier is blended, not a flat percentage — calculate it in two steps.
- A $600,000 home needs $35,000 minimum down, not $30,000.
- FHSA and HBP can be combined to accelerate how quickly you reach your target.
- Your down payment is only one piece of the budget — closing costs and legal fees need their own line item.
Frequently Asked Questions
Questions buyers ask me about down payments in Ontario.
What is the minimum down payment in Ontario?
It depends on the purchase price. Homes priced at $500,000 or less require a minimum of 5% down. For homes between $500,000 and $1,499,999, the minimum is 5% on the first $500,000 plus 10% on the portion above $500,000. For homes priced at $1.5 million or more, the minimum down payment is 20%.
Do I need 20% down to buy a home in Ontario?
Only if the home is priced at $1.5 million or more. Below that, you can buy with as little as 5% down on the first $500,000, with a blended rate applying up to $1,499,999. CMHC mortgage insurance covers the additional risk on lower down payments, which is why it’s required when you put down less than 20%.
Can I use my FHSA or RRSP for my down payment?
Yes. The First Home Savings Account (FHSA) allows up to $8,000 per year in contributions, to a $40,000 lifetime maximum, with tax-deductible contributions and tax-free withdrawals for a home purchase. The Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 from your RRSP per person — $120,000 per couple — which must be repaid over 15 years. Many buyers use both together.
Is a bigger down payment always better?
Not necessarily. A larger down payment reduces your mortgage insurance costs and monthly payments, but it also ties up more of your savings. The right amount depends on your full financial picture — your emergency fund, closing costs, and comfort level matter just as much as the down payment itself.
Not Sure Where You Land in These Tiers?
Let’s map out exactly what down payment you’ll need for the price range you’re considering, and build a savings plan around it.
Sales Representative · Zolo Realty Brokerage · Licensed in Ontario (RECO #5035461)
Toronto real estate agent specializing in first-time buyers and families across the GTA. 80+ five-star reviews · 100+ clients · $25M+ in completed transactions.