What is the minimum down payment needed for a home?

Education & Training with Century 21 United Realty Inc. RECO #4724381

A minimum down payment of 5% is required to purchase a home, subject to certain maximum price restrictions. For instance, in the Greater Vancouver area the maximum purchase price with 5% down is $250,000. Any purchase price in excess of $250,000 requires a minimum of 10% as a down payment. In addition to the down payment, you must also be able to show that you can cover the applicable closing costs (i.e. legal fees and disbursements, appraisal fees and a survey certificate, where applicable).

Regardless of the amount of your down payment, at least 5% of it must be from your own cash resources or a gift from a family member. It cannot be borrowed.

Lenders will generally accept a gift from a family member as an acceptable down payment provided a letter stating it is a true gift, not a loan, is signed by the donor. Where the mortgage loan insurance is provided by Canada Mortgage and Housing Corporation (CMHC), the gift money must be in the your possession before the application is sent in to CMHC for approval.

Mortgages with less than 25% down must have mortgage loan insurance provided by either CMHC or GE.

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Constantine Isslamow

Broker of Record / Mortgage Broker

CENTURY 21 United Realty Inc. Brokerage.

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CENTUM Core Financial Inc. Brokerage License #: 10642 Constantine Isslamow License#: M08005391

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Comments (1)

Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

Hi there Constantine,

there are currently at least 2 lenders available here in Canada who are offering a ZERO DOWN solution by way of a cashback.  One of them even gives a 5.5% cashback which you can use to pay for the 5% down and for the closing costs. 


Also, in your post you note that 25% downpayment is the limit for conventional mortgages, but it has changed to 20% downpayment.  Anyone with less than 20% and the lender will require the purchase of mortgage insurance.


Have a great weekend.

Aug 28, 2010 10:45 AM