Down Payment for a House in Canada: How Much You Really Need

In Canada you can buy a home with as little as 5% down, but the real number you need depends on the price. This guide breaks down the minimum down payment rules, what they cost you in Edmonton dollars, and how to reach your target faster with the FHSA, the RRSP Home Buyers' Plan, and a clear-eyed look at CMHC insurance.

The minimum down payment rules, plain and simple

Canada uses a tiered system. The percentage you must put down climbs as the price climbs.

• $500,000 or less: 5% of the full purchase price.
• Above $500,000 and below $1,500,000: 5% on the first $500,000, plus 10% on the amount above $500,000.
• $1,500,000 or more: 20% minimum. CMHC mortgage loan insurance cannot be used at this price, so there is no low-down-payment option.

That $1,500,000 ceiling is new. The insured mortgage cap rose from $1,000,000 to $1,500,000 on December 15, 2024, the first change since the cap was set in 2012. For 12 years it sat untouched, so this update opened lower down payments to a whole tier of buyers who were previously locked out.

What this looks like in Edmonton dollars

Rules are easier to trust when you see them against real prices. Here is what Edmonton's market asks for right now.

The median sold price for an Edmonton residential home is $472,518, and homes sell in a median of 29 days. Because that figure sits under $500,000, the math is the simple version: 5% of $472,518 is about $23,626.

That is the realistic target. Note the gap between asking and selling: the median list price is $543,885, roughly 15% above the median sold price. Anchor your savings goal to what homes actually close at, not the sticker.

If you buy closer to the top of the list range, say $543,885, you cross the $500,000 line and the tiered rule kicks in: 5% of the first $500,000 ($25,000) plus 10% of the remaining $43,885 ($4,389), for a total of about $29,389. The jump from $23,626 to $29,389 shows why every dollar of price above $500,000 costs you more up front.

Condos lower the bar further. The median Edmonton condo lists at $247,161, so the 5% minimum is roughly $12,358. For a first home, that entry point is within reach of a fully funded FHSA.

Before you settle on a price, run your real numbers. Our free mortgage payment calculator shows your monthly payment by price, rate, amortization, and down payment in seconds, so you can see what $23,626 down actually buys in monthly terms.

CMHC insurance: the cost of putting less than 20% down

Any down payment below 20% is a "high-ratio" mortgage, and it must carry CMHC mortgage loan insurance. This protects the lender, not you, and the premium is added to your mortgage. (In Alberta there is no provincial sales tax on the premium, so nothing extra is due at closing.)

The premium is a percentage of the total mortgage, and it shrinks as your down payment grows:

• 5% down (95% loan-to-value): 4.00%
• 10% down (90% LTV): 3.10%
• 15% down (85% LTV): 2.80%
• 75.01% to 80% LTV: 2.40%, though at a true 20% down you avoid the premium entirely.
• Larger down payments: rates fall to 0.60% at 65% LTV or less.

On the Edmonton median example, 5% down leaves a mortgage of about $448,892. At the 4.00% rate, the premium is roughly $17,956, added to the loan. Put 10% down instead and the rate drops to 3.10%, which is a meaningful saving over the life of the mortgage.

Want the exact dollar figure for your price and down payment? Our CMHC insurance premium calculator does the tiered math for you. And if you are buying an energy-efficient home, ask about the CMHC eco-products refund, which returns up to 25% of the premium.

Where your down payment money comes from

You do not need to save the full amount in a plain chequing account. Two federal tools do the heavy lifting tax-free.

The First Home Savings Account (FHSA) lets you contribute up to $8,000 per year to a lifetime maximum of $40,000. Contributions are tax-deductible like an RRSP, and withdrawals for a first home are tax-free like a TFSA. Unused room carries forward up to $8,000, so you can contribute up to $16,000 in a single year if you skipped the prior year.

The RRSP Home Buyers' Plan (HBP) lets you withdraw up to $60,000 per person from your RRSP toward a first home, tax-free, as long as you repay it. That limit rose from $35,000 for withdrawals made after April 16, 2024. Repayment runs up to 15 years, and if your home's completion date falls after 2022 and before 2027, the first repayment is deferred by an extra three years.

A couple who each max an FHSA and use the HBP can assemble a down payment well past $200,000 entirely inside tax shelters. That is far more than the $23,626 minimum on Edmonton's median home.

Qualifying is about more than the down payment

Saving the cash is only half the test. Lenders also check whether you can carry the loan.

Every insured mortgage is stress-tested at the greater of your contract rate plus 2%, or 5.25%. That floor of 5.25% has held since June 2021. So even if your offered rate is lower, the lender qualifies you as though rates were higher.

CMHC also caps your debt ratios: housing costs can take at most 39% of gross household income (GDS), and all debts combined at most 44% (TDS). At least one borrower needs a credit score of 600 or higher.

There is good news for Alberta buyers on the closing side. Alberta has no land transfer tax, which saves thousands compared with provinces like Ontario. See exactly what you will owe at the lawyer's office with our Alberta closing costs calculator.

To pressure-test the whole picture, including how the stress test shapes your ceiling, read our full guide on how much house you can actually afford in Edmonton. When you are ready to act, our buyer walkthrough explains every step of the buying process.

Frequently Asked Questions

What is the minimum down payment for a house in Canada?

It is 5% for homes priced $500,000 or less. For homes priced above $500,000 and below $1,500,000, it is 5% on the first $500,000 plus 10% on the portion above $500,000. Homes priced $1,500,000 or more require at least 20% because CMHC insurance is not available at that price.

How much is 5% down on the average Edmonton home?

Edmonton's median residential sold price is $472,518, so 5% is about $23,626. Because that price is under $500,000, the simple 5% rule applies rather than the tiered formula. A median Edmonton condo, listed at $247,161, needs about $12,358.

Do I have to pay CMHC insurance, and how much is it?

You pay CMHC mortgage loan insurance any time your down payment is below 20%. The premium is a percentage of the mortgage that shrinks as your down payment grows: 4.00% at 5% down, 3.10% at 10% down, 2.80% at 15% down, and 2.40% from 75.01% to 80% loan-to-value. A 30-year amortization adds a 0.20% surcharge.

Can I use my RRSP or FHSA for a down payment?

Yes. The FHSA allows up to $8,000 per year to a $40,000 lifetime maximum, with tax-deductible contributions and tax-free withdrawals for a first home. The RRSP Home Buyers' Plan allows a tax-free withdrawal of up to $60,000 per person, which you repay over up to 15 years. You can use both on the same purchase.

What is the mortgage stress test and how does it affect my down payment?

The stress test qualifies you at the greater of your contract rate plus 2%, or a 5.25% floor in place since June 2021. It does not change your minimum down payment, but it caps the price you can afford because your debt ratios must stay within 39% GDS and 44% TDS at that higher qualifying rate. A larger down payment lowers your loan and can help you pass.