“How much do I need down?” is the first question we hear — and the answer has a few moving parts.
The minimums
Five percent on the first $500,000, and ten percent on any amount between $500,000 and $1.5M. At $1.5M and above you need twenty percent of the whole price, and mortgage insurance isn’t available. On a $450,000 Edmonton home, the minimum is $22,500.
What CMHC insurance is
With less than 20% down, your mortgage is “high-ratio” and must be insured against default. The premium — 4.00% at 5–9.99% down, 3.10% at 10–14.99%, and 2.80% at 15–19.99% — can be paid in a lump sum or added to your mortgage and paid with it (CMHC). An insured mortgage runs 25 years at most; since December 15, 2024, first-time buyers and anyone buying a newly built home can choose 30 years, and CMHC’s premium is then 0.20% higher.
Twenty percent: the dividing line
Put 20% or more down and you skip the premium entirely and lower your monthly payment. But emptying your savings into the down payment isn’t always right — keeping a cushion for closing costs and the first year of ownership matters too.
First-home help
The First Home Savings Account lets you save up to $40,000 tax-free toward a down payment, and the RRSP Home Buyers’ Plan lets you borrow up to $60,000 from your RRSP. The two can stack.
We’ll help you find the down-payment sweet spot for your situation — not just the minimum.