If you’re thinking about buying a home in Ontario, one of the most important—and often most confusing—questions you’ll face is: What is the minimum down payment for a house?

Whether you’re a first-time buyer or simply new to the Ontario real estate market, understanding down payment requirements is key to setting a budget, securing a mortgage, and making confident decisions in your home buying journey. The good news? You’re not alone. With hundreds of buyers searching this question every month, it’s clear this is a common concern—and we’re here to break it down for you.

What Is a Down Payment?

Before we get into numbers, let’s clarify what a down payment actually is.

A down payment is the initial lump sum of money you contribute toward the purchase of a home. It’s paid upfront, and the remaining balance of the home’s price is typically financed through a mortgage loan.

Think of it as your stake in the property—the larger your down payment, the smaller your mortgage, and often, the better your loan terms.

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How Much is a Down Payment on a House in Ontario?

According to the Government of Canada’s Financial Consumer Agency, the minimum down payment required in Canada depends on the home’s purchase price and follows a tiered structure:

• Homes priced at $500,000 or less → Minimum down payment is 5%
• Homes priced between $500,000 and $1,499,999 →
  • 5% on the first $500,000
  • 10% on the portion above $500,000
• Homes priced at $1.5 million or more → Minimum down payment is 20%, as mortgage default insurance is not available

Let’s break that down with examples:

• For a home priced at $400,000, the required minimum down payment is 5% of the purchase price. This brings the total minimum down payment to $20,000.
• For a home priced at $750,000, the down payment is calculated in two parts:
  • 5% on the first $500,000 = $25,000
  • 10% on the remaining $250,000 = $25,000
  • Total minimum down payment = $50,000

• For a home priced at $1.5 million or more, a flat 20% down payment is required. This brings the total minimum down payment to $300,000.

How Much Is the Average Down Payment?

While the minimum is what you must contribute to qualify for a mortgage, many buyers choose—or are required—to pay more, especially in competitive markets.

On average, homebuyers in Ontario are putting down anywhere from 10% to 20%, especially if they want to avoid additional costs like CMHC mortgage insurance (more on that in a moment).

In major urban centers, where home prices often exceed $1 million, a 20% down payment is the starting point. However, for homes under the $1 million mark, first-time buyers often aim for around 10%, if not the 5% minimum.

What’s the Difference Between a Deposit and a Down Payment?

Great question—and it’s one we get all the time.

• A deposit is a smaller amount you provide when your offer on a home is accepted. It shows the seller you’re serious and is held in trust until the deal closes. Your deposit is applied toward your total down payment. Your deposit is not in addition to the down payment—it’s a portion of it.
• A down payment is the total amount you’re contributing to the purchase of the home and is due at closing.

If you’re buying a $600,000 home and plan to put down $40,000:

• You might offer a $10,000 deposit when your offer is accepted.
• On closing day, you’ll contribute the remaining $30,000 to complete your down payment.

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• Explore Our Current Listings
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• Working With the Wright Team

What Happens If You Put Less Than 20% Down?

If your down payment is under 20%, your mortgage is considered high-ratio and you’ll be required to purchase mortgage loan insurance through CMHC (Canada Mortgage and Housing Corporation) or another provider.

The cost depends on the size of your down payment and is usually added to your mortgage. While it does protect the lender, not the borrower, it’s often what makes homeownership possible for buyers with smaller savings.

If you’re able to put down 20% or more, you’ll avoid this fee altogether and can often qualify for better rates.

Your First Step Starts Here

Buying a home is a major milestone—and understanding how much you need for a down payment is a critical first step. The minimum down payment for a house in Ontario depends on the price of the home, but there are smart strategies and supports available to help you reach your goal.

Whether you’re starting with 5% or aiming for 20%, The Wright Team is here to guide you every step of the way. We work with trusted mortgage professionals and financial advisors to help our clients create a clear, achievable path to homeownership.

Got questions about down payments, deposits, or buying your first home in Ottawa? Reach out today—we’d love to help you take the next step with confidence.

Have questions about home buying? We can help. Call 613-692-0606 to get in touch, or reach us by email at info@ottawahomes.ca.