How Much Down Payment Do You Need in Canada?

The minimum down payment in Canada starts at 5% of the purchase price, but the exact amount depends on the price of the home. On Edmonton's median residential home of $472,584, that 5% works out to $23,629. This guide breaks down the rules, the math, and the Edmonton numbers so you know exactly how much cash you need to buy.

The minimum down payment rule in Canada

Down payment rules are set federally, so they apply the same way across Canada, including here in Alberta. The amount you need is tied to the price of the home, not your province.

There are three price tiers. The Canada Mortgage and Housing Corporation (CMHC) sets the floor for each one.

The first tier is the one most Edmonton buyers fall into. With a median residential sold price of $472,584, the typical Edmonton home sits comfortably under the $500,000 line, so the flat 5% rule applies.

What 5% looks like on a real Edmonton home

Numbers feel abstract until you anchor them to a real price. Here is what the down payment math looks like on Edmonton's median residential home of $472,584.

The gap between the 5% minimum and the 20% threshold is large. Going from $23,629 to $94,517 is an extra $70,888 in cash. For most first-time buyers, the 5% door is the realistic one, and that is exactly what the federal rules are built to allow.

These are live Edmonton listings, so you can see the real prices the 5% rule applies to. Want to test your own number? Run the figures through our mortgage payment calculator to see what your monthly payment looks like at different down payment amounts and rates.

The tiered rule above $500,000

Once a home crosses $500,000, the math changes. You no longer pay a flat percentage on the whole price. Instead, you pay 5% on the first $500,000 and 10% on every dollar above it.

CMHC's own worked example makes this clear. On a $760,000 home, the minimum down payment is $51,000: that is 5% on the first $500,000 ($25,000), plus 10% on the remaining $260,000 ($26,000). Compare that to a conventional 20% down payment on the same home, which would be $152,000.

Edmonton's active residential listings carry a higher median list price than what actually sells, partly because pricier homes sit on the market longer. If you are shopping above $500,000, this tiered rule is the one that decides your cash requirement.

The 20% line and CMHC insurance

Here is the rule that catches buyers off guard. Any time your down payment is less than 20% of the purchase price, you are required to carry CMHC mortgage loan insurance, as long as the home costs less than $1,500,000.

This insurance protects the lender, not you. If you default, it covers their loss. You pay the premium, but the bank is the one protected.

The premium is a percentage of your total mortgage and scales with how little you put down. The smaller your down payment, the higher the rate:

Across these tiers, the homeowner purchase premium ranges from 2.80% to 4.50% of the loan. Buyers using borrowed funds for the down payment pay the top 4.50% rate instead of 4.00%.

When 20% is mandatory

For homes priced at $1,500,000 or more, the choice disappears. CMHC mortgage loan insurance is not available at that price, so you must put down a full 20% and take a conventional mortgage.

This price cap was raised from $1,000,000 to $1,500,000 effective December 15, 2024. It was the first increase since 2012, and it means more buyers can now access an insured mortgage with less than 20% down. In Edmonton, where the median home is well under half a million, almost no buyers brush up against the $1.5 million ceiling.

How your down payment affects affordability

Your down payment does more than unlock the door. It sets your mortgage size, your monthly payment, and how much home you can actually afford.

A 2024 federal change also helps first-time buyers stretch. Effective December 15, 2024, first-time buyers and anyone purchasing a new-build home can take a 30-year amortization on an insured mortgage, up from the standard 25 years. A longer amortization lowers the monthly payment, though it costs more interest over time.

Before you lock onto a price, it helps to work backward from your budget. Our affordability calculator factors in the mortgage stress test and tells you the maximum price you can realistically target based on your income, debts, and down payment.

Ready to take the next step? Learn how buying a home works with hômm, and read our complete guide for first-time home buyers in Edmonton. When you are budgeting the full cash you need at closing, do not forget the closing costs first-time buyers face in Edmonton on top of your down payment.

Frequently Asked Questions

What is the minimum down payment to buy a house in Canada?

The minimum is 5% of the purchase price on homes priced $500,000 or less. On homes between $500,000 and $1,499,999, you pay 5% on the first $500,000 and 10% on the portion above that. At $1,500,000 or more, you need 20%. These rules are federal and apply across Alberta.

How much is a down payment on an average Edmonton home?

On Edmonton's median residential sold price of $472,584, the minimum 5% down payment is $23,629. For a median Edmonton condo at $250,647, the 5% minimum is just $12,532. Both prices fall under the $500,000 threshold, so the flat 5% rule applies.

Do I have to pay for mortgage insurance with a low down payment?

Yes. Any down payment under 20% requires CMHC mortgage loan insurance, as long as the home costs less than $1,500,000. The homeowner purchase premium ranges from 2.80% to 4.50% of your total mortgage, with the 5% to 9.99% down payment tier costing 4.00%. The insurance protects the lender, not you.

Is it better to put down 5% or 20%?

It depends on your cash and goals. Putting down 20% avoids CMHC insurance and lowers your mortgage, but on Edmonton's median home that means $94,517 in cash versus $23,629 at 5%. Many first-time buyers choose 5% to enter the market sooner and keep savings for closing costs and emergencies.

Did the down payment rules change recently?

The 5%, 10%, and 20% tiers themselves did not change, but the insured-mortgage price cap rose from $1,000,000 to $1,500,000 on December 15, 2024. The same date introduced 30-year amortizations on insured mortgages for first-time buyers and new-build purchases. These were the first major changes in over a decade.