Canada's Minimum Down Payment Rules
The down payment is the portion of the purchase price you pay upfront. Your mortgage covers the rest. In Canada, the minimum amount you must put down is set by federal rules and depends on the price of the home you are buying.
For homes priced under $500,000, the minimum down payment is 5% of the purchase price. For homes priced between $500,000 and $999,999, it is 5% on the first $500,000 and 10% on the remainder. Homes at $1 million or above require a minimum 20% down payment with no insured mortgage option.
These are the legal minimums. Putting down more than the minimum reduces your mortgage balance, lowers your monthly payments, and in many cases qualifies you for a better interest rate.
What Those Numbers Mean in Calgary
Calgary's benchmark prices as of April 2026 vary significantly by property type. Here is how the minimum down payment works against realistic Calgary price points.
Apartment condominium: benchmark around $330,000
Minimum down payment: 5% equals $16,500. This is the most accessible entry point in the Calgary market right now, and the apartment segment currently has the most inventory and the most room to negotiate.
Row home or townhouse: benchmark around $440,000
Minimum down payment: 5% equals $22,000. Row homes offer more space than condos and typically come with lower condo fees or no fees at all in newer communities.
Semi-detached home: benchmark around $680,000
Minimum down payment: 5% on $500,000 ($25,000) plus 10% on $180,000 ($18,000) equals $43,000 minimum.
Detached home: benchmark around $750,000
Minimum down payment: 5% on $500,000 ($25,000) plus 10% on $250,000 ($25,000) equals $50,000 minimum. Inner-city detached homes in Calgary regularly price above $900,000, which pushes the minimum down payment higher.
Remember that your down payment is separate from closing costs. Budget an additional 1.5% to 4% of the purchase price for lawyer fees, title insurance, home inspection, and other closing expenses. On a $550,000 home, that means keeping an extra $8,000 to $22,000 available beyond your down payment.
Where Can Your Down Payment Come From?
Canadian mortgage rules specify that your down payment must come from an acceptable source. Lenders and insurers will verify the origin of your funds, and not all sources are treated equally.
Personal savings
Savings held in a bank account, TFSA, or non-registered investment account for 90 days or more are the most straightforward source. Lenders typically want three months of bank statements showing the funds.
RRSP withdrawal via the Home Buyers' Plan
First-time buyers can withdraw up to $60,000 from their RRSP tax-free under the federal Home Buyers' Plan. The amount must have been in your RRSP for at least 90 days. Repayment is required over 15 years starting the second year after withdrawal. If you and your partner are both first-time buyers, you can each withdraw $60,000, giving you up to $120,000 combined from your RRSPs.
First Home Savings Account (FHSA)
The FHSA is one of the most powerful tools available to first-time buyers today. You can contribute up to $8,000 per year with a lifetime limit of $40,000. Contributions are tax-deductible (like an RRSP) and qualifying withdrawals for a home purchase are completely tax-free (like a TFSA). If you have not opened one yet, open one now, even if you are a few years away from buying. Unused contribution room carries forward.
Gifted funds
A financial gift from a direct family member is an acceptable down payment source for most lenders. You will need a signed gift letter stating the funds are a gift and not a loan, along with documentation showing the transfer.
Sale of another property
Proceeds from selling a home, investment property, or other real estate are acceptable as a down payment source and are straightforward to document.
The Mortgage Insurance Factor
If your down payment is less than 20% of the purchase price, your mortgage is considered a high-ratio mortgage and you are required to purchase mortgage default insurance. This insurance protects the lender if you default, not you as the borrower. The premium ranges from 2.8% to 4% of the mortgage amount depending on your down payment percentage, and it is typically added to your mortgage balance rather than paid upfront.
On a $550,000 home with a 5% down payment ($27,500), your insured mortgage would be $522,500 and the CMHC premium would be $20,900 (4%), bringing your total mortgage to $543,400. It is a real cost, but it is also what allows Canadians to enter the housing market with as little as 5% down instead of saving for years to reach 20%.
Frequently Asked Questions
What is the minimum down payment to buy a house in Canada?
In Canada, the minimum down payment is 5% on the first $500,000 of the purchase price and 10% on any portion between $500,000 and $999,999. Homes at $1 million or more require a minimum 20% down payment.
How much do I need saved to buy a house in Calgary?
For a Calgary apartment at roughly $330,000, the minimum down payment is about $16,500. For a detached home around $750,000, the minimum is about $50,000. You also need an additional 1.5% to 4% of the purchase price for closing costs, held separately.
Can I use my RRSP for a down payment in Canada?
Yes. Under the federal Home Buyers' Plan, first-time buyers can withdraw up to $60,000 from their RRSP tax-free to use as a down payment. The funds must be repaid to your RRSP over 15 years starting the second year after the withdrawal.
What is the First Home Savings Account (FHSA)?
The FHSA is a registered account that allows first-time buyers to contribute up to $8,000 per year (lifetime maximum $40,000). Contributions are tax-deductible and qualifying withdrawals for a home purchase are tax-free, combining the best features of both an RRSP and a TFSA.
Do I need 20% down to avoid mortgage insurance in Canada?
Yes. If your down payment is less than 20%, you are required to purchase mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The premium ranges from 2.8% to 4% of your mortgage amount and is typically added to your mortgage balance.
