Mortgage Down Payment in Canada 2026: Minimums, CMHC Insurance & the 20% Rule

Q: What is the minimum down payment for a house in Canada in 2026?

Canada uses a tiered minimum down payment. You need 5% of the first $500,000 of the purchase price, plus 10% of the portion between $500,000 and $1,500,000. Homes priced at $1,500,000 or more require at least 20% down. Example: a $600,000 home needs $35,000 (5% of $500k + 10% of $100k). These are federal rules and apply to insured mortgages.

Q: Do I need 20% down to avoid CMHC mortgage default insurance?

Yes. In Canada, any mortgage with less than 20% down is 'high-ratio' and must be insured by a mortgage default insurer (CMHC, Sagen, or Canada Guaranty). Putting 20% or more down gives you a 'conventional' (uninsured) mortgage with no default-insurance premium. More down also reduces your loan amount and monthly payment.

Q: How much is CMHC mortgage default insurance in Canada?

The premium is a percentage of the mortgage amount, based on loan-to-value (LTV). As of 2026 the standard schedule is: LTV 90.01%-95% = 4.00%, 85.01%-90% = 3.60%, 80.01%-85% = 3.10%, 75.01%-80% = 2.40%, 65.01%-75% = 1.70%, and 65% or less = 0.60%. The premium can be added to your mortgage and is charged on insured (high-ratio) loans only.

Q: Can first-time home buyers use an FHSA or RRSP for the down payment?

Yes. The First Home Savings Account (FHSA) lets first-time buyers save up to $8,000 per year (lifetime $40,000) tax-free and withdraw it tax-free for a first home. The Home Buyers' Plan (HBP) allows withdrawing up to $60,000 from an RRSP, repayable over 15 years. Provincial programs may also help. Eligibility rules apply.

Q: How does my down payment affect my mortgage rate and payment?

A larger down payment lowers your loan amount, which reduces your monthly payment and total interest. It can also move you from an insured to an uninsured mortgage, which may change the rates and stress-test rules you qualify under. Use our mortgage payment calculator to model different down-payment scenarios with current rates.

Quick takeaway: In 2026 you generally need at least 5% down, but the amount rises on a tiered scale above $500,000, and any home over $1.5 million needs 20%. Less than 20% down means a government-insured (high-ratio) mortgage with a one-time CMHC/default-insurance premium. More down = smaller loan, lower payment, and no insurance premium.

What is a mortgage down payment?

A down payment is the portion of a home's purchase price you pay upfront in cash. The rest is financed with your mortgage. In Canada the minimum down payment is set by federal rules, and the size of your down payment determines whether your mortgage is insured (high-ratio) or uninsured (conventional). Your down payment also drives how much you borrow, your monthly payment, and how much interest you pay over time.

Minimum down payment rules in Canada (2026)

Canada uses a tiered minimum down payment for insured mortgages:

5% of the first $500,000 of the purchase price
10% of the portion between $500,000 and $1,500,000
20% for any home priced at $1,500,000 or more (these cannot be insured)

Examples of the minimum down payment at common price points:

Purchase price	Minimum down payment	Mortgage before insurance premium
$500,000	$25,000 (5%)	$475,000
$600,000	$35,000 (5% of $500k + 10% of $100k)	$565,000
$900,000	$65,000 ($25k + $40k)	$835,000
$1,000,000	$75,000 ($25k + $50k)	$925,000
$1,500,000	$125,000 ($25k + $100k)	$1,375,000

These are the federal minimums for insured mortgages. You can always put down more. Provincial and territorial rules, and lender criteria, may also apply.

Insured vs uninsured (the 20% rule)

Insured (high-ratio)
Down payment under 20%. Required to be insured by CMHC, Sagen, or Canada Guaranty. A one-time premium is added to the mortgage. You must also pass the insured stress test.

Uninsured (conventional)
Down payment of 20% or more. No default-insurance premium. Different qualifying rules apply, but you avoid the insurance cost entirely.

Why 20% matters
Crossing the 20% threshold removes the insurance premium and can change your rate and qualification path. It's one of the biggest levers in your mortgage math.

CMHC / mortgage default insurance premiums

If your down payment is below 20%, your mortgage must be insured, and a one-time premium is charged as a percentage of the loan amount (based on loan-to-value, or LTV). The standard 2026 premium schedule is:

Loan-to-value (LTV)	Premium (% of mortgage)
90.01% – 95% (down 5%–10%)	4.00%
85.01% – 90% (down 10%–15%)	3.60%
80.01% – 85% (down 15%–20%)	3.10%
75.01% – 80% (down 20%–25%)	2.40%
65.01% – 75% (down 25%–35%)	1.70%
65% or less (down 35%+)	0.60%

The premium can be paid upfront or added to your mortgage balance (which increases your borrowed amount and total interest). It applies only to insured mortgages. See current CMHC mortgage loan insurance details for the official schedule.

How your down payment affects your mortgage payment

Every dollar of down payment reduces the amount you borrow, which lowers both your monthly payment and your total interest. It can also move you from an insured to an uninsured mortgage, changing the rates and stress-test rules you qualify under. Use our mortgage payment calculator to compare, for example, a 5%, 10%, and 20% down payment on the same home price and current rate.

For context, advertised 5-year fixed mortgage rates in Canada have been in the low-4% range and 5-year variable rates somewhat lower through mid-2026, after the Bank of Canada held its policy rate at 2.25% on July 15, 2026 (next rate decision September 2, 2026). Rates change frequently — verify live figures on our Canada mortgage rates page before relying on any number.

The rate figures above are illustrative reference points from mid-August 2026 market context, not a quote or guarantee.

Down payment help for first-time buyers

First Home Savings Account (FHSA): Save up to $8,000 per year (lifetime $40,000); contributions are tax-deductible and qualifying withdrawals for a first home are tax-free.
Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP, repayable over 15 years.
Provincial and territorial programs: Several provinces offer land-transfer-tax refunds or down-payment assistance for first-time buyers — eligibility varies by region.

These programs can boost your down payment, but each has rules and limits. Confirm eligibility with the relevant government source or a qualified professional.

Choosing your down payment

Know the minimum – Use the tiered rule above to see your baseline.
Weigh insurance cost – Pushing to 20% removes the CMHC premium but ties up more cash.
Keep an emergency buffer – Don't drain savings so completely that you can't cover closing costs or repairs.
Stress-test your payment – Model the payment at today's rates with our payment calculator and affordability calculator.
Compare lenders and brokers – Rates and insured-mortgage terms differ; shopping around can matter as much as your down payment size.

Compare mortgage options for your down payment

RateShop helps Canadian buyers and renewers review current mortgage options, estimate payments at different down-payment levels, and connect with rate partners. See what today's market looks like for your scenario.

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Rate & advice disclaimer

This article explains general Canadian mortgage down-payment rules for education only. Minimum-down-payment thresholds, CMHC/default-insurance premium rates, and government programs (FHSA, HBP) can change, and lender, provincial, and eligibility criteria vary. Nothing here is personalized mortgage, legal, tax, or financial advice, and no rate, approval, savings, or outcome is guaranteed. Verify current rules and rates directly with the Government of Canada, CMHC, your lender, or a qualified professional before making decisions.

Frequently asked questions

What is the minimum down payment for a house in Canada in 2026?

Canada uses a tiered minimum: 5% of the first $500,000, plus 10% of the portion from $500,000 to $1,500,000, and 20% for homes at $1.5 million or more. For example, a $600,000 home needs $35,000 down.

Do I need 20% down to avoid CMHC mortgage default insurance?

Yes. Mortgages with less than 20% down are high-ratio and must carry default insurance (CMHC, Sagen, or Canada Guaranty). At 20% or more, your mortgage is uninsured and there is no premium.

How much is CMHC mortgage default insurance in Canada?

The premium is a percentage of the mortgage based on loan-to-value: 4.00% at 95% LTV down to 0.60% at 65% LTV or less. It's a one-time charge, usually added to the loan, and applies only to insured mortgages.

Can first-time home buyers use an FHSA or RRSP for the down payment?

Yes. The FHSA allows tax-free saving and withdrawal of up to $40,000 lifetime for a first home, and the HBP lets you withdraw up to $60,000 from an RRSP (repayable). Programs have eligibility rules.

How does my down payment affect my mortgage rate and payment?

More down means a smaller loan, lower payment, and less interest. Reaching 20% also removes insurance and may change your rate and qualifying rules. Model it with our payment calculator.

Sources & further reading

Note: Live web extraction was unavailable during publication (Firecrawl not configured), so rate figures are illustrative reference points from the site's documented mid-August 2026 market context, not freshly scraped quotes. Always verify current rates and rules with the primary sources above.