What is the minimum down payment in Canada?

5% on the first $500,000, 10% on the portion between $500,000 and $1.5 million, and 20% at $1.5 million or more, where mortgage default insurance is no longer available.

Why is the insurance premium added to my mortgage?

Mortgage default insurance protects the lender if a borrower defaults. Because it is a one-time cost tied to the loan, it is normally added to the mortgage and paid off over the amortization rather than in cash on closing. The provincial sales tax on the premium, where it applies, must still be paid in cash.

Can I get a 30-year amortization?

On an insured mortgage, a 30-year amortization is available to eligible first-time buyers and buyers of newly built homes, subject to program criteria. Otherwise insured mortgages are limited to 25 years.

Down Payment & Mortgage Insurance Calculator

See the minimum down payment for your price, whether mortgage default insurance applies, what the premium costs and what you would actually finance.

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Down payment

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I am buying a newly built home

Minimum down payment required

$45,000

5% of the first $500,000, plus 10% of the portion above it. This is marginal — the requirement does not jump when you cross $500,000.

Loan-to-value: 92.9%
Insurance premium: $26,000.00
Mortgage before insurance: $650,000
Total financed mortgage: $676,000

This mortgage would be classified as: Insured

With less than 20% down, mortgage default insurance is required and the premium is normally added to the mortgage.

Sales tax on the premium is due in cash

ON charges sales tax on the insurance premium. That works out to $2,080.00, and unlike the premium itself it cannot be added to the mortgage — you pay it on closing day.

Estimated monthly payment: $3,737.72
Maximum amortization available: 25 years

What different down payments would require

Minimum required$45,000

Your down payment$50,000

20% (no insurance premium)$140,000

Premium rates differ slightly between mortgage default insurers, and eligibility for insurance is determined by the insurer and lender, not by this calculator. Clover Mortgage Inc. is a licensed mortgage brokerage. This calculator provides estimates for information only and is not an offer of credit, an approval, or financial advice.

Every mortgage is different. A Clover Mortgage broker can confirm what you actually qualify for across more than 50 lenders — at no cost to you.

All calculators

Minimum down payment

$45,000

Common questions

What is the minimum down payment in Canada?: 5% on the first $500,000, 10% on the portion between $500,000 and $1.5 million, and 20% at $1.5 million or more, where mortgage default insurance is no longer available.
Why is the insurance premium added to my mortgage?: Mortgage default insurance protects the lender if a borrower defaults. Because it is a one-time cost tied to the loan, it is normally added to the mortgage and paid off over the amortization rather than in cash on closing. The provincial sales tax on the premium, where it applies, must still be paid in cash.
Can I get a 30-year amortization?: On an insured mortgage, a 30-year amortization is available to eligible first-time buyers and buyers of newly built homes, subject to program criteria. Otherwise insured mortgages are limited to 25 years.