Minimum down payment calculator

The three federal tiers, in plain English

Canada's minimum down payment is set federally and it slides with price. The rules in effect as of 2026:

• 5% on the first $500,000 of the purchase price. So a $500K home requires a minimum $25K down.
• 10% on the portion of the price between $500,000 and $1,499,999. A $900K home requires $25K (5% of the first $500K) plus $40K (10% of the $400K above), or $65K total.
• 20% on the entire price once it hits $1.5 million. A $1.5M home requires $300K down. This is the uninsured threshold.

On December 15, 2024, the federal government raised the insured mortgage cap from $1 million to $1.5 million, which is why the 20% threshold sits where it does today. That change opened up mid-range Fraser Valley properties to first-time buyers who would have been capped under the old rules.

What that means at Fraser Valley prices

The minimum is a federal rule. The market is whatever it is. At Fraser Valley pricing as of early 2026, here's how the minimum down payment lines up against typical buyer scenarios:

• $500K Surrey condo — $25K minimum down (5%). Many first-time buyers we work with land here.
• $800K Langley townhouse — $55K minimum down ($25K on first $500K + $30K on the $300K above).
• $1.2M Maple Ridge detached — $95K minimum down ($25K on first $500K + $70K on the $700K above).
• $1.6M Walnut Grove detached — $320K minimum down (20% across the board).

The 20% threshold is a real decision, not just a rule

Putting 20% or more down means your mortgage is uninsured. No CMHC premium added to the loan, and the lender offers you their uninsured rate menu (typically 15 to 30 basis points higher than insured rates). Putting less than 20% down means CMHC insurance is mandatory and added to the loan balance, but the insured rate is lower. Which side of the line is cheaper depends on the specific numbers — that's exactly the question the CMHC insurance premium calculator is built to answer.

Where the down payment can come from

Four sources count toward the down payment for federally regulated lenders. Almost every Fraser Valley first-time buyer we work with uses a combination of at least two.

• Personal savings. Cash in a chequing or savings account, GICs you can break, or any other liquid funds. Source and 90-day history are usually required for anti-money-laundering checks.
• FHSA (First Home Savings Account). Tax-deductible deposits, tax-free growth, tax-free withdrawal for a first home. Annual limit $8,000, lifetime limit $40,000. Open one as soon as you start saving even if you're a year from buying. Our FHSA calculator models the math.
• RRSP Home Buyers' Plan. Withdraw up to $60,000 tax-free from your RRSP for a down payment, with a 15-year repayment schedule. Our HBP calculator models the repayment.
• Gifted funds from immediate family. Allowed by most lenders with a gift letter confirming it's not a loan. Some lenders require the funds to be in your account 14 to 30 days before closing.

Combining FHSA, RRSP HBP, and savings

A first-time buyer who has been saving for two to three years can often combine all three federal sources for meaningful results. A couple where both partners have an FHSA can deposit up to $16,000 per year combined, with a lifetime ceiling of $80,000. Add a couple of years of RRSP contributions (eligible for HBP withdrawal), plus ordinary savings, and a $100K+ down payment becomes achievable in three to five years on a typical Fraser Valley household income.

The order we usually suggest: max the FHSA first (it's tax-deductible AND the withdrawal is tax-free, which RRSP HBP isn't — HBP withdrawals are tax-free but the contributions get re-grossed for repayment). Then build RRSP for HBP eligibility. Then ordinary savings as the third leg.

What lenders verify and how to avoid down-payment surprises

Three things lenders check during underwriting. First, the source of funds — a 90-day bank statement showing the down payment was accumulated, not deposited last week from somewhere unexplained. Second, the gift letter if any portion is gifted. Third, the existence of the FHSA or RRSP funds and the withdrawal authorisation. Buyers most commonly trip on the first one: a large unexplained deposit 60 days before closing can require additional sourcing documentation that delays the deal. If you're moving funds between accounts in the months before buying, keep records.

How to use this calculator

Plug in your target home price and the calculator above returns the federal minimum down payment, broken down by the 5% / 10% / 20% tiers. It also shows what a higher down payment would do to your loan balance and monthly payment. Run the calculator at three target prices: the home you'd like, the home you can stretch to, and the home that fits your savings rhythm. The third number is usually the sweet spot for first-time buyers. Book a 20-minute chat with the FRIVE team if you want help mapping a savings pace to a specific Fraser Valley target neighbourhood.

Frequently asked questions

What's the minimum down payment for a first-time home buyer in BC?

The federal minimum is 5% on the first $500,000 of the purchase price, 10% on the portion between $500,000 and $1,499,999, and 20% on the entire price at $1.5 million or above. The same minimums apply across all of Canada, not just BC. There is no separate provincial down payment rule.

Can I put 5% down on a home over $500K?

Yes, but only on the first $500K. On a $700K home, the minimum down payment is $25K (5% of the first $500K) plus $20K (10% of the $200K above), or $45K total. You can put more than the minimum down — that's a planning choice, not a rule.

Do I need 20% down to avoid CMHC insurance?

Yes. CMHC insurance is required on any mortgage where the down payment is less than 20% of the purchase price (a "high-ratio" mortgage). At 20% or more, the mortgage is "conventional" or "uninsured" and no insurance is needed. The boundary is sharp, not gradual.

Can I borrow my down payment?

Most federally regulated lenders require the down payment to be your own funds, gifted from family, or from FHSA/RRSP. Borrowed down payments are limited and counted against your debt-service ratios at the new debt payment. Some lenders allow a "flex down" program with a borrowed portion, but the qualifying math gets tighter and rates are usually higher.

How much over the minimum down payment should I aim for?

We usually suggest aiming for whatever gets you to the next sensible threshold. If 5% is your target, see if 10% gets you there. If 10% is the plan, see what 15% does. The biggest single jump is from 19.99% to 20% (you remove CMHC insurance and gain access to uninsured rates). After that, more down payment helps but in diminishing increments. Most of our buyers land between 10% and 20%.

Can I use my Tax-Free Savings Account (TFSA) for a down payment?

Yes, and many buyers do. TFSA withdrawals are tax-free anytime, so the rules around the down payment source still apply (90-day sourcing), but there's no special program structure like the FHSA or HBP. The TFSA doesn't offer a tax deduction on the deposit, which is why we usually suggest maxing the FHSA first (deductible) and only adding the TFSA after.

What if my parents want to help?

Gifted funds from immediate family are allowed by most federally regulated lenders. The lender will want a signed gift letter confirming the money is a gift, not a loan, and that no repayment is expected. The funds usually need to be in your account 14 to 30 days before closing for verification. We see this work most smoothly when families plan the gift four to six weeks ahead of the offer date.

Does the down payment include closing costs?

No. The down payment is the cash applied to the purchase price. Closing costs (BC Property Transfer Tax, legal fees, inspection, title insurance, etc.) are on top. Plan for 2% to 4% of the purchase price in closing costs. The cash to close calculator gives you the full closing-day total.

Can my FHSA and my RRSP HBP both go into the same down payment?

Yes. Many first-time buyers use both. FHSA withdrawals don't need to be repaid (the program is designed for one-shot first-home use). RRSP HBP withdrawals do need to be repaid over 15 years. The two stack — you can pull from both for the same purchase.

Is there a maximum down payment?

No. You can put 100% down if you want to and the lender doesn't get a mortgage at all. There's no rule against it. The trade-off is that money tied up in home equity isn't earning return elsewhere, and you lose the option value of a lower-rate-paid loan. Most buyers aim for the lowest down payment they can carry without paying the CMHC premium they don't want to pay.

Sources

1. Government of Canada — Down payment rules and the December 2024 insured mortgage cap increase to $1.5 million. canada.ca/department-finance
2. CMHC — How much you need for a down payment. cmhc-schl.gc.ca
3. Government of Canada — First Home Savings Account. canada.ca/fhsa
4. Government of Canada — RRSP Home Buyers' Plan. canada.ca/hbp
5. FRIVE journal — Down payment math at Fraser Valley prices. closing-costs-first-home-fraser-valley