Ontario Down Payment Guide | Home Price Examples

When you’re a first-time home buyer, there are a lot of things to consider. A major one is how much you’ll need for a down payment. The amount you have saved, your overall budget, and the price of the home will all help determine what you can comfortably afford.

In this blog post, we’ll break down the minimum down payment needed in Ontario at different home price points. We’ll also explain when mortgage insurance may be required and how the VanDinther Team can help you make informed decisions throughout the buying process.

What Is the Minimum Down Payment in Ontario?

The minimum down payment in Ontario follows federal mortgage rules. How much you need depends on the purchase price of the home.

For homes priced at $500,000 or less, the minimum down payment is 5% of the purchase price.

For homes priced above $500,000 but below $1.5 million, you need 5% on the first $500,000 and 10% on the portion above $500,000.

For homes priced at $1.5 million or more, the minimum down payment is 20%.

These are minimum requirements. Depending on your financial situation, mortgage lender, or credit history, you may be required to provide a larger down payment.

Ontario Down Payment Examples by Home Price

Seeing the numbers can make the down payment rules easier to understand.

$500,000 Home

A 5% minimum down payment on a $500,000 home is $25,000.

$650,000 Home

For a $650,000 home:

5% of the first $500,000 = $25,000
10% of the remaining $150,000 = $15,000

Minimum down payment: $40,000

$800,000 Home

For an $800,000 home:

5% of the first $500,000 = $25,000
10% of the remaining $300,000 = $30,000

Minimum down payment: $55,000

$1,000,000 Home

For a $1 million home:

5% of the first $500,000 = $25,000
10% of the remaining $500,000 = $50,000

Minimum down payment: $75,000

$1,250,000 Home

For a $1.25 million home:

5% of the first $500,000 = $25,000
10% of the remaining $750,000 = $75,000

Minimum down payment: $100,000

$1,500,000 Home

At $1.5 million or more, a minimum down payment of 20% is required. On a $1.5 million home, that equals $300,000.

Do You Need a 20% Down Payment to Buy a Home?

No. Many buyers can purchase a home with less than 20% down if they meet lender and mortgage insurance requirements.

When your down payment is less than 20%, you will typically need mortgage loan insurance. This insurance protects the lender if you cannot make your mortgage payments. The premium can usually be added to your mortgage, which increases the amount you borrow.

A larger down payment can reduce your mortgage amount and may lower your overall borrowing costs.

Remember to Budget Beyond the Down Payment

Your down payment is only one part of the cost of buying a home. Buyers should also plan for closing costs such as legal fees, land transfer tax, title insurance, home inspections, moving expenses, and other adjustments.

CMHC notes that closing costs can often total about 1.5% to 4% of the purchase price. Planning for these expenses ahead of time can help you avoid surprises before closing day.

Work With Lori VanDinther and the VanDinther Team

Knowing how much you need for an Ontario down payment is an important first step, but your budget is only part of the home-buying process.

Lori VanDinther and the VanDinther Team bring over 30 years of local real estate experience to buyers across Burlington, Oakville, Hamilton, and surrounding communities. They can help you understand local home prices, compare neighbourhoods, review properties, and build a buying strategy that fits your budget and long-term goals.

Whether you are saving for your first home or preparing to make a move, the VanDinther Team can help you understand your options and move forward with confidence.

Contact the VanDinther Team

Direct: 905-330-2002
Office: 905-632-2199
Email: info@loriv.com
Website: Contact us today

If you are planning to buy a home in Burlington, Hamilton, or a surrounding community, start by understanding your down payment, your full budget, and the local market before beginning your search.