Most people quote five percent. That's only true up to a point, and in Toronto — where the median condo sold for about $590,000 this month — the real minimum is usually higher than buyers expect. Here is the exact math.
Canada's minimum down payment moves in tiers based on purchase price. It is not five percent of the whole thing unless the home costs $500,000 or less:
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| $500,000 – $1,499,999 | 5% of the first $500,000 + 10% of the rest |
| $1,500,000 or more | 20% of the entire price |
That middle tier is where people get caught. It applies to most of the Toronto condo market.
5% of the first $500,000 = $25,000. Plus 10% of the remaining $300,000 = $30,000. Total $55,000 — not the $40,000 a flat five percent would suggest. That $15,000 gap has stalled a lot of otherwise-ready buyers mid-search.
If your down payment is less than 20%, your mortgage must be insured. The premium is a percentage of the loan and gets added to your mortgage — you finance it rather than paying it up front:
| Down payment | Premium on the mortgage |
|---|---|
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% or more | None |
Ontario charges 8% provincial sales tax on your mortgage insurance premium — and unlike the premium itself, that tax cannot be added to your mortgage. You pay it in cash on closing day. On a typical high-ratio Toronto purchase it lands somewhere between $1,500 and $2,500, and it surprises nearly every first-time buyer.
On that $800,000 example with $55,000 down, the mortgage is $745,000, the premium at 4.00% is about $29,800, and the Ontario PST on it is roughly $2,384 — due in cash, on top of your down payment and land transfer taxes.
Run your own numbers with land transfer tax, CMHC premium, PST and closing costs all included.
Homes priced at $1.5 million or more cannot be insured at all, which means a full 20% down is mandatory — $300,000 minimum. There is no five or ten percent option at that level regardless of income or credit.
Stacking an FHSA with the Home Buyers' Plan is how a lot of Toronto buyers bridge the gap from ten percent toward twenty — which removes the insurance premium and the PST on it entirely.
There is no universally correct answer, and anyone who gives you one without seeing your numbers is guessing. The honest tradeoff: waiting to reach 20% saves you the insurance premium and its PST, but it also means more months of rent and exposure to price movement. Getting in at 10% costs more in financing but starts your equity earlier.
What tips the decision is usually your timeline, your job stability, and whether your savings rate is actually outpacing price growth in the buildings you want. That is a conversation worth having with real numbers rather than rules of thumb.
Five percent on the first $500,000, ten percent on the portion between $500,000 and $1.5 million, and twenty percent on homes priced at $1.5 million or more. On an $800,000 home the minimum is $55,000, not $40,000.
No. The minimum down payment rules are the same for first-time buyers and repeat buyers. What first-time buyers do get is access to a 30-year amortization on insured mortgages, land transfer tax rebates of up to $8,475 in Toronto, and accounts like the FHSA and Home Buyers' Plan.
The premium is 4.00% of the mortgage with 5–9.99% down, 3.10% with 10–14.99% down, and 2.80% with 15–19.99% down. The premium is added to your mortgage, but Ontario's 8% sales tax on that premium must be paid in cash at closing.
Yes. The Home Buyers' Plan lets you withdraw up to $60,000 tax-free toward a first home, and a qualifying couple can combine for $120,000. The withdrawal is repaid to your RRSP over 15 years and can be combined with an FHSA.
Only if the condo is priced at $500,000 or less. With the median Toronto condo around $590,000 in July 2026, most purchases fall into the tier requiring 5% on the first $500,000 plus 10% above it — roughly $34,000 on a $590,000 unit.
This page is general information for Ontario buyers, not legal, tax, mortgage, or financial advice, and it is not a guarantee of approval, pricing, or availability. Figures are estimates current as of July 2026 and change frequently. Confirm your own numbers with a licensed mortgage professional and a real estate lawyer before making an offer. Brendan Stewart is a Sales Representative registered with RECO (Lic. 6004758) with Keller Williams Referred Urban Realty, Brokerage.
Take the six-question readiness check and I'll tell you honestly what your numbers support today, what's holding you back if anything is, and what to fix first. No credit check, no obligation.