In Canada, the minimum down payment is 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1,499,999. The mandatory-20% threshold moved from $1 million to $1.5 million on December 15, 2024: a property priced under $1.5M can therefore be bought with an insured loan. The same reform expanded the 30-year amortization on insured loans: first reserved for first-time buyers of new construction, it is now open to all first-time buyers, resale included, and to all buyers of new construction, for an owner-occupied property. The trade-off of an insured loan: the premium (4.00%, 3.10% or 2.80% of the loan depending on your down payment, plus 0.20 points for the 30-year amortization) and, in Quebec, the 9% tax on that premium, which is payable in cash at the notary on closing day.
The exact thresholds (and the dead rule to forget)
- Price up to $500,000: 5% minimum.
- Portion between $500,000 and $1,499,999: 10% of that portion.
- Price of $1,500,000 and up: 20% minimum, as the loan is no longer insurable.
The old “20% from $1 million” rule has been dead since December 15, 2024, when the insurable ceiling moved to $1.5M. It still shows up everywhere, and it costs projects to buyers who wrongly believe they are blocked.
Three worked examples
- $450,000 (South Shore condo): minimum $22,500 (5%).
- $800,000 (single-family home): $25,000 + $30,000 = $55,000 (6.9% of the price).
- $1,300,000: $25,000 + $80,000 = $105,000 (8.1%): insurable since the reform, where the old rule demanded $260,000.
In Montreal and on the South Shore, that last case changes everything: boroughs like Saint-Laurent or Rosemont, where single-family medians exceed a million, become reachable again without 20% down.
The 30-year amortization: who qualifies
Since December 15, 2024, the 30-year amortization on insured loans is open to: first-time buyers, for new construction and resale alike; and any buyer of new construction, even repeat owners. In all cases the property must be owner-occupied.
The effect: on a $500,000 loan, stretching from 25 to 30 years trims the monthly payment by a few hundred dollars, at the cost of more interest over time and a 0.20-point surcharge on the premium. A good qualification lever, a poor reflex if it is just to “breathe”: run both scenarios.
The insurance premium and the Quebec tax
An insured loan (CMHC, Sagen or Canada Guaranty) costs a premium calculated on the loan amount: 4.00% with 5 to 9.99% down, 3.10% with 10 to 14.99%, 2.80% with 15 to 19.99%, plus 0.20 points if you take the 30-year amortization. The premium is added to the loan, but in Quebec the 9% tax on the premium is paid in cash at the notary: budget it in your closing funds, along with the welcome tax and notary fees.
Where the down payment can come from
Three tax tools stack: the FHSA ($40,000 lifetime per person, deductible going in and tax-free coming out, see our FHSA guide), the HBP (repayable RRSP withdrawal) and family gifts. Our French FHSA + HBP calculator puts numbers on your real capacity, and a broker from the team walks you through it in English.
Your real budget takes 20 minutes to figure out.
Down payment, premium, welcome tax, monthly payment: a broker from our team puts real numbers on your project before you start shopping, in English or in French.
Frequently asked questions
What is the minimum down payment in Canada in 2026?
5% on the first $500,000 of the price, then 10% on the portion between $500,000 and $1,499,999. From $1.5 million, the loan is no longer insurable and the minimum becomes 20%. Example: $55,000 for an $800,000 property. The mandatory-20% threshold has been $1.5M since December 15, 2024, no longer $1M.
Who qualifies for the 30-year amortization?
On an insured loan: all first-time buyers (new construction or resale) and all buyers of new construction even if they have owned before, for an owner-occupied property. The expanded rule has been in force since December 15, 2024 and carries a 0.20-point insurance surcharge.
How much does CMHC insurance cost?
The premium is calculated on the loan amount: 4.00% with a 5-9.99% down payment, 3.10% from 10 to 14.99%, 2.80% from 15 to 19.99%, plus 0.20 points for a 30-year amortization. The premium is added to the loan, but in Quebec the 9% tax on the premium is paid in cash at the notary at closing.
Published on August 16, 2026 by the Loaa & Manseur team, #1 team at RE/MAX Platine in 2024 and 2025 · Tell us about your project