Down Payments


Every home buyer has their own unique financial situation. What works for one person may not work for the other. The most important thing to do is to talk to a professional. Start by finding a mortgage broker, assessing your funds and detailing what your home goals are. From there you will be able to find out what options will work best for you.


How much should I expect to save up?

Start by understanding the average price of homes in your area. The average home price in Canada in August 2021 was $663,500, according to data from the Canadian Real Estate Association:
  • $33,175 for a 5% down payment
  • $132,700 for a 20% down payment

What percentage of the price is used?

There isn't one fixed percentage rate used to calculate your down payment, but there are a few standards to keep in mind as you start budgeting:
  • 5% - the minimum down payment required in Canada
  • 20% - the minimum required to avoid paying mortgage loan insurance 

How is a down payment calculated?

When you're buying a home, the down payment is calculated as a percentage of the total purchase price, the higher the price, the high the down payment.

When your down payment is bigger, your mortgage loan will be smaller. At the end of a typical 25-year mortgage amortization, you'll be paying less in interest.