How Much Do You Actually Need for a Down Payment in Ontario?

In Ontario, your minimum down payment depends on the purchase price, not a flat percentage. For homes up to $500,000, you need 5% down. For the portion of the price between $500,000 and $1.5 million, you need 10% on that portion. So on a $750,000 home, that works out to roughly $50,000 total, 5% on the first $500,000 and 10% on the remaining $250,000.

Above $1.5 million, you need at least 20% down and you will not qualify for mortgage default insurance through CMHC, so the math changes again.

A few things that catch first-time buyers off guard. Under 20% down means you pay a CMHC insurance premium, which gets added to your mortgage. And your down payment is separate from closing costs, things like land transfer tax, legal fees, and home inspection, so budget for both.

Good news for first-timers: the FHSA (First Home Savings Account) lets you save up to $40,000 tax free specifically for this, and you can still use the RRSP Home Buyers' Plan on top of that. Don at Pineapple Mortgage walks our clients through exactly how these stack for their situation, worth a call before you start house hunting seriously.

Looking to purchase a home in Durham Region or beyond? Send us the text 'DOWN PAYMENT' to 647-529-8348 and we will send you a booking link for a short 15-minute call.