Down Payment

You may not need 20% down to buy a home! For eligible buyers purchasing a home to live in, Canada’s minimum down payment is:

• $500,000 or less: 5% of the purchase price.
• Over $500,000 and under $1.5 million: 5% on the first $500,000, plus 10% on the remaining amount.
• $1.5 million or more: At least 20%.
• A larger down payment reduces the amount you borrow. Different requirements may apply to rental properties and other financing situations. Canadian down payment guidelines

Mortgage Default Insurance
With less than 20% down, mortgage default insurance is generally required. This protects the lender—not the buyer—and the premium can usually be added to your mortgage. It is separate from home insurance. Make sure your payment estimate includes this premium if it applies.

Amortization and Mortgage Term
Your amortization is the total time scheduled to repay your mortgage, commonly 25 years. Eligible first-time buyers or buyers purchasing a newly built home may qualify for a 30-year insured amortization. Other 30-year options may be available with at least 20% down.

Your mortgage term is different: it’s how long your current mortgage agreement lasts, often between one and five years. At the end of the term, you typically renew if you still owe a balance. A longer amortization generally means lower payments but more interest over time. 

Fixed or Variable Rate
A fixed-rate mortgage keeps the same interest rate throughout your mortgage term, making budgeting more predictable.

A variable-rate mortgage has an interest rate that can change with your lender’s prime rate. Depending on the mortgage, your payments may change, or your payment may stay the same while the amounts going toward interest and principal change.

A mortgage professional can help you compare the options. 

Interest Rate
Use a rate quoted by your mortgage broker or lender for a more useful estimate. Your available rate depends on your financial profile, down payment, mortgage term and product. Any pre-filled rate is an illustration, not a guaranteed offer.

Property Taxes
Property taxes are an additional homeownership expense. Use the property’s most recent tax information as a starting point, and confirm the expected amount with the municipality. Taxes can change, so any amount shown in the calculator should be treated as an estimate.

Home Insurance
Mortgage lenders generally require home insurance to be in place before funding your purchase. Get a quote for the specific property and include it in your budget. Home insurance is separate from mortgage default insurance.

Planning Your Next Move
This calculator is a starting point, not a mortgage approval. Remember to budget for closing costs, utilities, maintenance and any condo fees. Need help getting started? I can connect you with a mortgage professional to explore your options.