For a typical owner-occupied home with one or two units, the usual minimum down payment is 5% of the first $500,000 and 10% of the price above that amount, for purchases below $1.5 million. A home priced at $1.5 million or more requires at least 20%. The ordinary rules are national, so they apply in PEI, Nova Scotia and New Brunswick. CMHC Purchase requirements, FCAC minimum down payments
The property type and the lender's assessment can change what you need. Confirm the requirement for the home you intend to buy before treating a calculator result as your final cash budget.
Calculate the minimum from the purchase price
For a purchase at $500,000 or less, multiply the price by 5%; above $500,000 and below $1.5 million, calculate the two portions separately and add them together. The following examples assume a qualifying owner-occupied home with one or two units.
| Purchase price | Usual minimum down payment |
|---|---|
| $350,000 | $17,500 |
| $500,000 | $25,000 |
| $650,000 | $40,000 |
| $900,000 | $65,000 |
| $1,500,000 | $300,000 |
On the $650,000 home, the first portion is $25,000, which is 5% of $500,000. The remaining $150,000 requires $15,000 at 10%. That produces a $40,000 down payment, rather than 5% of the entire purchase price. CMHC down payment formula
Does a duplex or triplex change the calculation?
CMHC's owner-occupied purchase rules allow the price-based formula for one- or two-unit properties. For an owner-occupied property with three or four units, its minimum is 10%, and the buyer must also satisfy the lender and insurer's other requirements. CMHC unit-count requirements
For an illustrative $650,000 purchase, that means $40,000 for a qualifying owner-occupied duplex and $65,000 for a qualifying owner-occupied triplex. The $25,000 difference comes from the unit count. Tell the lender how you intend to occupy the property; a fully rented investment property needs a separate financing assessment.
What does mortgage default insurance add?
A mortgage with less than 20% down usually requires mortgage default insurance. This protects the lender if the borrower cannot repay. The premium is a separate cost that may be added to the mortgage, in which case you also pay interest on it. FCAC explanation of default insurance
On a hypothetical $450,000 purchase with 5% down, the buyer supplies $22,500 and borrows $427,500 before insurance. Using CMHC's 4% premium for that borrowing level, the premium is $17,100. Adding it to the loan gives a starting mortgage balance of $444,600. CMHC premium table
That example assumes a standard 25-year insured mortgage with the down payment coming from the buyer's own savings. It excludes interest and closing costs. Other products or down payment sources can have different premiums, so obtain the lender's actual figures.
What changes when you put 20% down?
On the same $450,000 purchase, 20% down is $90,000 and leaves a $360,000 mortgage before any other financed costs. Mortgage default insurance is generally unnecessary at that down payment level, though a lender can require it in some circumstances. FCAC insurance guidance
Compared with the insured example, you would put in another $67,500 and begin with $84,600 less mortgage debt. That includes the avoided $17,100 premium. Compare the resulting payments using the actual rates offered, because the insured and uninsured quotes may differ.
Before choosing the larger down payment, write down what cash would remain after closing. If it would leave very little for repairs or a period without income, review a smaller down payment alongside a savings reserve. The useful choice depends on the whole household budget.
Keep closing costs and assistance programs separate
Legal fees and other closing expenses still need cash beyond the down payment. Ask your lawyer for an estimate and your lender for the required proof of funds, then add a reserve for moving and immediate repairs. Buying-home costs
Provincial assistance can change how an eligible buyer funds the purchase. Nova Scotia's participating-credit-union pilot also offers a separate lower-down-payment route, so the ordinary table above does not describe every program. Check the Nova Scotia first-home guide, the PEI assistance guide or the New Brunswick first-home guide for the relevant conditions.
To confirm the amount needed for a particular property, ask BRX to review the purchase price and financing. Include the number of units and your intended use so the calculation matches the home you are buying.