Down Payment Calculator (Canada, 2026): Minimum and CMHC Insurance
See the smallest down payment the rules allow on any home price, whether the money you have clears it, and what mortgage default insurance costs at each level of down payment. The table shows the premium, the sales tax on it, the mortgage and the monthly payment side by side, so you can see what one more percent buys.
| Down payment | $40,0006.2% | $50,0007.7% · you | $65,00010% | $97,50015% | $130,00020% |
|---|---|---|---|---|---|
| Insurance premium (added to the loan) | $24,400 (4.00%) | $24,000 (4.00%) | $18,135 (3.10%) | $15,470 (2.80%) | none |
| Sales tax on the premium (cash at closing) | $1,952.00 | $1,920.00 | $1,450.80 | $1,237.60 | none |
| Mortgage | $634,400 | $624,000 | $603,135 | $567,970 | $520,000 |
| Monthly payment at 4.5% | $3,511.23 | $3,453.67 | $3,338.19 | $3,143.56 | $2,878.06 |
| Cash you need for the down payment and the tax | $41,952 | $51,920 | $66,451 | $98,738 | $130,000 |
Land transfer tax, legal fees and the other closing costs are on top of this. The mortgage payment calculator adds them up for your province.
Where the money can come from
- FHSA: $8,000 a year, $40,000 lifetime. Deductible going in and tax-free coming out for a first home.
- Home Buyers' Plan: up to $60,000 from your RRSP, repaid over 15 years.
- A gift from a relative: counts as a saved down payment with a gift letter.
- Borrowed money: a loan or a line of credit is allowed, but the premium rises to 4.50% above 90% loan-to-value and the payments count against you.
Show the math
Minimum down payment: 5% of the first $500,000 of the price plus 10% of the rest, and 20% of the whole price at or above $1,500,000, where insured mortgages stop. Insurance premium: the loan-to-value ratio (loan ÷ price) picks the CMHC band, 0.60% up to 65%, 1.70% up to 75%, 2.40% up to 80%, 2.80% up to 85%, 3.10% up to 90%, 4.00% up to 95%, plus 0.20% for an amortization over 25 years and 4.50% in place of 4.00% when the down payment is borrowed. The premium is added to the mortgage. Ontario charges 8% sales tax on the premium, paid in cash on closing day. Payments use the Canadian rule of semi-annual compounding. The saving timeline compounds monthly at the rate you enter.
How this calculator works
The minimum down payment is set by federal rules. It is 5% of the first $500,000 of the price and 10% of the part above that. At $1,500,000 or more the home cannot be insured, so the minimum jumps to 20% of the whole price.
Mortgage default insurance protects the lender, not you, and is required whenever the down payment is under 20%. The premium is a percentage of the loan, set by the loan-to-value ratio. The calculator applies the CMHC table, adds the surcharge for an amortization over 25 years, and uses the higher rate when the down payment is borrowed.
The premium is added to the mortgage, so you pay interest on it for the life of the loan. The sales tax on it, where a province charges one, is paid in cash at closing and is shown in the “cash you need” line.
Premium by loan-to-value ratio
| Loan as a share of the price | Down payment | Premium |
|---|---|---|
| up to 65% | 35% or more | 0.60% |
| 65% to 75% | 25% to 35% | 1.70% |
| 75% to 80% | 20% to 25% | 2.40% |
| 80% to 85% | 15% to 20% | 2.80% |
| 85% to 90% | 10% to 15% | 3.10% |
| 90% to 95% | 5% to 10% | 4.00% |
Add 0.20% for a 30-year amortization. A borrowed down payment above 90% loan-to-value pays 4.50% instead of 4.00%. Loans at 80% or less need no insurance.
Worked example: a $650,000 home in Ontario with $50,000 down
The minimum on $650,000 is $40,000: 5% of $500,000 is $25,000, plus 10% of the remaining $150,000 is $15,000. A $50,000 down payment is 7.7% of the price, so it clears the minimum but the mortgage must be insured.
| Line | Amount |
|---|---|
| Loan before insurance | $600,000 |
| Loan-to-value | 92.3%, so the premium rate is 4.00% |
| Premium added to the loan | $24,000 |
| Ontario sales tax on the premium, cash at closing | $1,920.00 |
| Mortgage including the premium | $624,000 |
| Monthly payment at 4.5% over 25 years | $3,453.67 |
| With 20% down ($130,000) instead | $520,000 mortgage, $2,878.06 a month, no premium |
Going from $50,000 to $130,000 down costs $80,000 more in cash but removes $24,000 of premium and cuts the payment by $575.61 a month.
Assumptions
- Insurance follows the CMHC premium table. Sagen and Canada Guaranty publish the same rates.
- The 30-year option is only available with under 20% down to first-time buyers and buyers of newly built homes. The calculator applies the surcharge but does not check eligibility.
- Payments use the Canadian rule of semi-annual compounding on a fixed rate.
- Closing costs other than the sales tax on the premium are not included. The mortgage payment calculator adds land transfer tax, legal fees and the rest.
Common questions
Frequently asked questions
- What is the minimum down payment in Canada?
- 5% of the first $500,000 of the price and 10% of the part above that, for homes under $1.5 million. At $1.5 million and above the home cannot be insured, so you need 20% down. With less than 20% down at any price, mortgage default insurance is required.
- How much does CMHC mortgage insurance cost in 2026?
- The premium depends on your loan-to-value ratio. It is 2.80% of the loan with 15% to 19.99% down, 3.10% with 10% to 14.99% down, and 4.00% with 5% to 9.99% down. A 30-year amortization adds 0.20%. The premium is added to your mortgage. The provincial sales tax on it (8% in Ontario, 9% in Quebec, 6% in Saskatchewan) must be paid in cash at closing.
- Is it better to put 20% down or buy sooner with 5%?
- 20% down avoids the premium and gives a smaller loan, so it is always cheaper once you own. The trade-off is time. Use the saving timeline in More options to see how long 20% would take. If prices are rising faster than your savings, waiting can cost more than the premium. If they are flat, waiting usually wins.
- Can I borrow my down payment?
- Yes. A personal loan, a line of credit or a cash-back mortgage can fund it, but the premium rises to 4.50% when the down payment is borrowed and the loan is over 90% of the price, and the loan payments count against you in the lender's debt ratios. Insurers also require the borrowed money to be repayable on normal terms.
- Does a gift count as a down payment?
- Yes. A gift from an immediate family member counts as a saved down payment. The lender asks for a signed gift letter saying the money does not have to be repaid, and usually wants to see it in your account before closing.
- Can I use my RRSP or FHSA for the down payment?
- Both. The Home Buyers' Plan lets a first-time buyer take up to $60,000 out of an RRSP with no tax withheld, to be repaid over 15 years. An FHSA takes $8,000 a year and $40,000 lifetime, contributions are deductible, and withdrawals for a qualifying first home are tax-free and never repaid. You can use both for the same home.
- Why do I pay sales tax on the insurance premium in cash?
- Ontario, Quebec and Saskatchewan charge provincial sales tax on the premium. The premium itself can be added to the mortgage, but the tax cannot. It is paid on closing day with your other closing costs. Manitoba stopped taxing it in 2020, and the other provinces never did.
- What happens to the premium if I sell or refinance?
- Nothing comes back. The premium is paid once, up front, and covers the lender for the life of the loan. If you move to another home and need insurance again, you pay again on the new loan, though CMHC and the private insurers offer a portability credit in some cases.
Sources
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
- CMHC – Premium information for homeowner and small rental loans
- CMHC – Notice: CMHC Revises Homeowner Mortgage Loan Insurance Premiums (2024-06-05)
- Department of Finance Canada – Boldest mortgage reforms in decades come into force today (2024-12-15)
- Department of Finance Canada – Delivering the Boldest Mortgage Reforms in Decades (backgrounder, Sept 2024)
- FCAC – How much you need for a down payment (modified 2025-10-15)
- CMHC – CMHC Purchase (product page)
- Department of Finance Canada – Statement by the DPM and Minister of Finance on the Canadian housing market (2022-12-15)
- OSFI – Minimum qualifying rate for uninsured mortgages (modified 2026-01-29)
- Justice Laws – Interest Act, R.S.C. 1985, c. I-15, s. 6
- Bank of Canada – Bank of Canada maintains the policy rate at 2¼% (2026-09-02)
- Bank of Canada Valet – V80691335 Conventional mortgage 5-year (chartered banks)
- Ontario – Retail Sales Tax: Insurance and benefits plans (updated 2025-06-30)
- Saskatchewan Finance – PST-73 Insurance Contracts (revised April 2020)
- Manitoba Finance – RST Bulletin No. 061 Insurance (revised July 2020)
- CMHC – Debt service calculator (GDS 39% / TDS 44% for insured mortgages; 32% housing-cost rule of thumb)
- FCAC – Buying a home (home buying costs)
- FCAC – Paying off your mortgage faster (prepayment privileges)
- Ontario – Rent increase guideline (2026: 2.1%)
- Government of British Columbia – Rent increases (2026 maximum: 2.3%)
- Bank of Canada – Bank of Canada publishes its 2026 schedule for policy interest rate announcements and other major publications (2025-08-01)
- Bank of Canada – Bank of Canada publishes its 2027 schedule for policy interest rate announcements and other major publications (2026-07-27)
- CRA – Calculate your TFSA contribution room (modified 2026-02-20)
- CRA – MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE (TFSA dollar limit, 2009 to 2026)
- CRA – How contributions affect your RRSP deduction limit (modified 2026-01-29)
- CRA – RRSP contribution receipt: Contribution year (modified 2026-01-29)
- CRA – Participating in your FHSAs (modified 2026-02-02)
- CRA – Opening your FHSAs (modified 2026-02-10)
- CRA – Closing your FHSA (modified 2026-02-02)
- CRA – What is the Home Buyers' Plan (withdrawal limit $60,000; repayment relief for first withdrawals 2026 to 2028)
- CRA – Lifelong Learning Plan
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