Saving for a Down Payment
Lesson 3 of 12 in Buying a Home in Canada · 25 minutes
Read about how much you need for a down payment in Canada and strategies for saving. Learn about government programs like the First Home Savings Account.
What you'll learn
- Understand down payment requirements in Canada
- Learn about savings strategies and government programs
- Calculate how much you need to save
From the lesson
Saving for a Down Payment
Buying a home in Canada requires a down payment — the money you pay upfront before the mortgage covers the rest. Saving for a down payment is one of the biggest financial challenges for newcomers.
How Much Do You Need?
In Canada, the minimum down payment depends on the home price: - Homes up to $500,000: minimum 5% down payment - Homes $500,000 to $1,499,999: 5% on the first $500,000 and 10% on the rest - Homes $1,500,000 or more: minimum 20% down payment
Example: For a $600,000 home, you need 5% of $500,000 ($25,000) plus 10% of $100,000 ($10,000) = $35,000 minimum down payment.
If your down payment is less than 20%, you must pay CMHC mortgage insurance. This protects…