Use the purchase-price bands correctly, then build a cash plan that includes more than the down payment.
Start with the purchase-price bands
For a typical eligible owner-occupied purchase, the minimum down payment changes with the price. It is not simply 5% of every home. A lender can require more, and different property or borrower circumstances need a separate review. See FCAC’s down-payment table.
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| More than $500,000, below $1,500,000 | 5% of the first $500,000, plus 10% of the remainder |
| $1,500,000 or more | 20% of the price |
Apply the bands, not one percentage
For a $750,000 purchase, the first $500,000 needs $25,000. The remaining $250,000 needs $25,000. That produces a $50,000 minimum down payment and a $700,000 base mortgage before any financed insurance premium.
At $1,200,000, the calculation is $25,000 + $70,000 = $95,000. At exactly $1,500,000, the 20% requirement becomes $300,000. Treating that last price as another blended-band calculation would substantially understate the cash needed.
Check the property and insurance eligibility
A down payment below 20% generally requires default insurance. FCAC explains insurance requirements. CMHC Home Start requires purchase price and lending value below $1.5 million, with 10% down for owner-occupied three- or four-unit properties. Check CMHC’s property criteria.
Being able to produce the minimum cash does not establish the loan amount a lender will approve. Keep two separate questions in your plan: “How much cash must I bring?” and “Can this mortgage qualify?”
Count your deposit once
The purchase deposit forms part of the down payment. It is not another down payment on top. CMHC explains the deposit and purchase costs.
Suppose the $750,000 example uses $50,000 down and you have already paid a $15,000 deposit. The remaining down payment is $35,000. Closing charges and adjustments are separate. Keep the deposit receipt beside your cash worksheet so the same $15,000 is not deducted twice.
Compare the minimum with a larger contribution
On that same $750,000 home, a 20% contribution would be $150,000: $100,000 more than the minimum. Compare both options using the actual mortgage amount, insurance treatment, payment and cash left after closing. A larger down payment is not a useful plan if your worksheet quietly spends the same savings on moving and repairs as well.
- List each source of funds and when it becomes available.
- Separate the deposit already paid from money still due.
- Reserve closing costs and a household cash buffer.
- Confirm the required source-of-funds evidence with the lender.
Model the purchase in the residential calculator, then reconcile its figures with your written financing terms and closing statement.
Put the figures into a scenario
Use the appropriate assumptions, compare the results and save a summary for your file.
Open the Residential Calculator →Sources and review
References checked September 22, 2026. Examples are illustrative; confirm the lender, insurer and program requirements for your situation.