Down Payment

To obtain a mortgage a Borrower must provide an upfront cash payment called a Down Payment.  How much will the down payment be? That depends on the type of mortgage product and the customer profile. 

There are three broad categories:


  1. High-Ratio Mortgages require a down payment of between 5% and 19.99%. They must be insured (by CMHC, Sagan or Canada Guarantee) but are only eligible for insurance if the mortgage balance is less than $1 million;
  2. Conventional Insurable Mortgages require a down payment of at least 20% and if the mortgage balance is less than $1 million the mortgage is also eligible for insurance. Although, the insurance is not necessarily required.
  3. Conventional Uninsurable Mortgages of over $1 million require a down payment of at least 20%.


  • Properties valued under $500,000 - the minimum down payment must be at least 5% 
  • Properties valued between $500,000 and $999,999 - the minimum down payment must be at least 5% on the first $500,000 and 10% on the amount above $500,000. 
  • Properties valued at $1,000,000 or more - the minimum down payment must be at least 20%.


What if you don’t have the money for a down payment? You should be aware that borrowing a down payment will make you ineligible for some mortgage products.  Many first-time home buyers receive a gift from family for some, or all, of their Down Payment.  This is acceptable to most lenders as long as the Borrower provides a letter from the giftor showing whether the funds are repayable or not. How would a lender even know where the funds for your down payment came from? Borrowers are required to provide documentation proving the source of the funds.

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About The Author

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Don Scott

Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.

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