Definition
The down payment is the portion of the purchase price you pay in cash at signing; the balance is financed by your mortgage. It is expressed as a percentage of the price.
Current federal rules (May 2026): • Price ≤ CA$500,000: 5% minimum on the entire amount. • Price between CA$500,000 and CA$1,500,000: 5% on the first CA$500,000 tranche, plus 10% on the portion above (the ceiling was raised from CA$1M to CA$1.5M for insured purchases on December 15, 2024). • Price > CA$1,500,000: 20% minimum (mortgage must be conventional, not CMHC-insurable).
Accepted sources: personal savings, sale of a property, RRSP (via HBP), FHSA, documented family gift (signed gift letter), employer bonus. Personal loans are generally not accepted as down payment. A larger down payment lowers your LTV, opens better rates, and avoids the CMHC premium.