Current Canada-first explanation of minimum down payment rules and how they affect mortgage insurance and eligibility.
Minimum down payment is the smallest amount of the purchase price a borrower must contribute from their own funds and eligible sources in order to complete the purchase.
Down payment size affects more than cash needed at closing. It also affects whether the mortgage is high-ratio, whether mortgage default insurance is required, and which products remain available.
As of 2026, federal consumer guidance says the minimum down payment is:
If the down payment is less than 20%, the borrower will typically need mortgage loan insurance if the property is otherwise eligible.
For a $750,000 home, the minimum down payment is not 5% of the whole amount. It is 5% of the first $500,000 and 10% of the remaining $250,000. That produces a required minimum of $50,000.
Borrowers sometimes assume the rule is a flat 5% on any insured purchase. That is not how the stepped Canadian rule works.
Another mistake is thinking minimum down payment and closing costs are the same. They are different cash requirements, and both matter on closing day.
Eligible sources of down payment, gifted funds, occupied use, and insurer rules can all affect the file. Lenders may also impose stricter conditions than the bare minimum.