The current price tiers
For an eligible purchase priced at $500,000 or less, the minimum down payment is 5%. Above $500,000 and below $1.5 million, add 5% of the first $500,000 and 10% of the remainder. At $1.5 million or more, the minimum is 20%. For a $650,000 home, the price-tier arithmetic is $25,000 plus $15,000, or $40,000. This is a minimum calculation, not an insurer or lender acceptance.
Use registered accounts carefully
The Home Buyers’ Plan currently permits eligible RRSP withdrawals of up to $60,000 per participant. The FHSA has different contribution, eligibility and qualifying-withdrawal rules. The two can be used for the same qualifying purchase if their conditions are met. Check the current CRA repayment schedule for your withdrawal year; withdrawing retirement savings has a longer-term cost.
Trace the money and retain a buffer
Set up automatic transfers to a dedicated down payment savings account each payday. For gifts, ask your lender for its documentation requirements before moving money. Keep statements that show the source and path of funds. The former First-Time Home Buyer Incentive is discontinued and is not an available source for a new application.
A question worth asking
Does 20% down remove all mortgage costs?
No. It may avoid high-ratio default insurance, but interest, fees, property taxes, legal costs and other ownership costs remain.
Check the source
Primary references checked October 28, 2026. Rules and product availability can change; confirm the requirements for your actual transaction.