How Much Down Payment Do You Need to Buy a House in Ontario? (2026 Rules)

Buyers · Updated 2026-07-17 · By Richard Addo-Kessie, Realtor & Mortgage Agent

Direct answer: in 2026 the minimum down payment in Ontario is 5% of the first $500,000 of the purchase price, plus 10% of anything between $500,000 and $1,499,999 - and a full 20% once the price hits $1.5 million, per federal rules published by Canada.ca and CMHC. Here is what that means in real Brampton dollars, and the parts of the rules most buyers hear about too late.

The formula, in real GTA numbers

$600,000 condo (Brampton or Mississauga): $25,000 + $10,000 = $35,000 minimum
$800,000 townhome: $25,000 + $30,000 = $55,000 minimum
$1,000,000 semi or detached: $25,000 + $50,000 = $75,000 minimum
$1,500,000 and up: no insured option - 20% minimum, so $300,000 on a $1.5M home

Notice the jump at $1.5 million: the minimum down payment roughly quadruples between a $1,499,999 home and a $1,500,000 one. Around that line, list price strategy and negotiation matter enormously - a few thousand dollars of purchase price can swing your required cash by six figures.

The $1.5 million insured cap - and who gets it

In December 2024 the federal government raised the insured mortgage price cap from $1 million to $1.5 million, which is what makes minimum-down purchases possible on typical GTA detached homes at all. But the fine print matters: guides from WOWA and mortgage lenders note the expanded cap and the 30-year amortization option are aimed at first-time buyers and new-construction purchases - repeat buyers purchasing resale homes face tighter limits. Which bucket you fall into changes your minimum cash and your monthly payment, so confirm your status before you set a budget.

What putting less than 20% down really costs

With less than 20% down, your mortgage must carry default insurance (CMHC or a private insurer). The premium scales with your loan-to-value and is normally added to the mortgage balance rather than paid up front, so it costs monthly, not at closing. Insured mortgages often carry slightly better interest rates than uninsured ones - lenders take less risk - which offsets part of the premium. The right answer between 5%, 10%, and 20% down is a math problem specific to your file, not a rule of thumb.

Where Brampton buyers actually find the down payment

FHSA first: tax-deductible going in, tax-free coming out for a qualifying first home. A couple can build serious tax-advantaged savings here.
RRSP Home Buyers' Plan: tax-free withdrawal for the down payment, repaid over 15 years.
Gifted funds: immediate-family gifts are accepted by most lenders with a signed gift letter confirming the money is not a loan.
Sale of your current home: for move-up buyers, your equity is the down payment - which is why an accurate evaluation of your current home comes before any budget talk.

One rule covers all of these: lenders must trace your down payment source with about 90 days of account history. Money hopping between accounts without a paper trail is one of the most common reasons files stall.

Down payment is not the whole cash story

Budget for closing costs on top: Ontario land transfer tax (minus the up-to-$4,000 first-time buyer rebate), legal fees, title insurance, and adjustments. A common planning figure is roughly 1.5% to 3% of the purchase price in addition to your down payment. On an $800,000 purchase, that means planning around $70,000 to $80,000 total cash, not $55,000.

The bottom line

The down payment rules reward buyers who know exactly which category they fall into - first-time vs. repeat, resale vs. new build, under vs. over $1.5 million - before they start shopping. A 20-minute pre-approval conversation settles all of it: your minimum down, your insurance premium, your amortization options, and your real maximum budget under the stress test.

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Frequently asked questions

What is the minimum down payment on a house in Canada in 2026?

The minimum is 5% of the first $500,000 of the purchase price plus 10% of the portion between $500,000 and $1,499,999. Homes priced at $1.5 million or more require at least 20% down, because mortgage default insurance is not available above that price.

How much is the down payment on an $800,000 house in Ontario?

The minimum is $55,000: 5% of the first $500,000 ($25,000) plus 10% of the remaining $300,000 ($30,000). With less than 20% down you also pay a mortgage default insurance premium, which is usually added to the mortgage rather than paid in cash.

Can first-time buyers get a 30-year mortgage in Canada?

Yes. First-time buyers with insured mortgages can access 30-year amortizations, as can buyers of new construction. The longer amortization lowers the monthly payment, which helps qualification on GTA-priced homes.