Buying at $650,000 in Canada takes at least $40,000 down, or 6.2% of the price. Enter your price and savings in the down payment calculator to see if you have enough yet, and what a bigger deposit does to your loan.
How is the minimum worked out?
The rule works in slices, not as one flat percentage. The first $500,000 of the price needs 5% down, and each dollar above that, up to $1,500,000, needs 10%. Reach $1,500,000 and the requirement jumps to 20%, because a home that dear can’t be insured. So the minimum as a share of the price creeps up as homes get pricier: 5.0% at $500,000, 7.9% at $1,200,000, and then a leap at the cap.
Minimum down payment at common prices
| Purchase price | Minimum down | Share of price |
|---|---|---|
| $400,000 | $20,000 | 5.0% |
| $500,000 | $25,000 | 5.0% |
| $650,000 | $40,000 | 6.2% |
| $800,000 | $55,000 | 6.9% |
| $1,200,000 | $95,000 | 7.9% |
| $1,500,000 | $300,000 | 20.0% |
What does a bigger deposit save on a $650,000 home?
Say you’ve saved $50,000. The minimum is $40,000, so you clear it by $10,000. Put 10% down, $65,000, and the calculator shows a premium of $18,135 and a total loan of $603,135.
At 15% down, $97,500, the premium falls to $15,470 and the loan to $567,970. At 20%, $130,000, there’s no premium and you borrow $520,000. Every step up saves premium, but only the 20% step wipes it out. Set that against the cash you’d want left in savings after closing, because a deposit that drains your account to zero leaves nothing for closing costs or a repair.
Now try a $1,200,000 home with $95,000 saved. Plenty of people assume 20% kicks in above $1,000,000, which would demand $240,000. That changed. The cap moved to $1,500,000 on 15 December 2024, so $95,000 is enough on paper. A lender still has to approve the loan, and the extra $145,000 you keep is real money for closing costs or repairs.
Does meeting the minimum mean I qualify?
No. The minimum covers the price only, and closing costs come on top. Lenders expect you to have that cash ready, and the closing costs calculator gives you a number. The page also leaves out the higher premium band for a deposit that comes from outside your own savings, so ask your lender how yours is treated.
Lenders test your income, your debts and your credit as well. Income and debts set the size of the loan, and the mortgage affordability calculator estimates it. Need to build the deposit faster? Look at the FHSA calculator. The CMHC insurance calculator shows what the premium adds, and the mortgage payment calculator turns the loan into a monthly figure.
Where do these rules come from?
Rules for insured mortgages have changed several times in recent years, so a figure from an old article may be out of date.
The tiers and the $1,500,000 cap come from the Financial Consumer Agency of Canada and the federal finance department’s announcement of the December 2024 changes. Premium amounts follow CMHC’s published rates. Confirm the current rules with your lender, since this site has no link to any government office.
Frequently asked questions
What is the minimum down payment on a $650,000 home?
$40,000. That's 5% of the first $500,000 plus 10% of the remaining $150,000.
How much do I need for a home over $1,500,000?
At least 20% of the price, because insurance isn't available at that level. On $1,500,000 that's $300,000.
Does 20% down remove the CMHC premium?
Yes. On a $650,000 home, 20% is $130,000, and the premium of $18,135 you'd see at 10% down drops to zero.
Do closing costs count toward the down payment?
No. Closing costs are separate cash you need on top of the deposit.
Is the minimum the same in every province?
The federal minimum applies across Canada. Taxes and fees at closing differ by province.
Sources and updates
Updated: . How we check rates · Editorial team · Updates
Estimate only. These figures are a planning estimate, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns, and we don't offer tax, legal or accounting services. We have no connection with the Canada Revenue Agency, Revenu Québec or any provincial government. Your real amounts depend on details this tool cannot see, so confirm them with an official source or a qualified professional before you act.