How much do you need for a down payment?
For an owner-occupied home with 1 or 2 units, CMHC Purchase requires at least 5% on the first $500,000 and 10% on the remainder, with an eligible purchase price and lending value below $1.5 million. For owner-occupied properties with 3 or 4 units, the minimum is 10%. Your application must also meet the lender’s criteria.
A down payment below 20% generally requires mortgage default insurance. The premium can increase the amount financed; it protects the lender. At $1.5 million or more, plan for at least 20% down, subject to the applicable criteria. You must be able to document the source of your funds.
Source: CMHC — Purchase ↗
Two ways to help fund your down payment: the FHSA and HBP
First Home Savings Account (FHSA)
Participation room starts when you open your first account: $8,000 a year, a basic lifetime limit of $40,000 and up to $8,000 in unused room carried forward. A qualifying withdrawal is tax-free and does not need to be repaid. Opening and withdrawal conditions differ: check residency, first-time buyer status, the purchase agreement and deadlines.
Source: CRA — FHSA contributions ↗
Source: CRA — Qualifying withdrawals ↗
Home Buyers’ Plan (HBP)
An eligible participant can withdraw up to $60,000 from their RRSPs, repayable over 15 years. Under CRA rules checked on October 25, 2026, repayments for a first withdrawal in 2026 begin in 2031. A written purchase agreement and the other eligibility conditions are required. A repayment shortfall may be included in income. You can combine the HBP and FHSA if you meet each program’s conditions.
Source: CRA — Home Buyers’ Plan ↗
Budget beyond the down payment
Fictional example · Planning assumptions
A $400,000 purchase with 20% down
- Down payment
- $80,000
- Assumed closing-cost allowance
- $8,000
- Reserve kept after the purchase
- $5,000
- Cash needed in this example
- $93,000
The base mortgage would be $320,000. The $8,000 is neither a fee quote nor an estimate of your costs: replace it with quotes and calculations for the actual property.
Allow for the notary, inspection, appraisal if required, property transfer duties, tax adjustments and moving costs. For an insured purchase, include the separately payable tax on the premium: 9% through December 31, 2026, then 9.975% for premiums paid after that date. Keep room for maintenance and unexpected expenses.
Source: Revenu Québec — Insurance premiums tax ↗
Estimate the residential mortgage payment, then add taxes, insurance and other expenses to your monthly budget.
Get ready to apply, one step at a time
Prequalification is an initial estimate; pre-approval may involve a closer review. The terms and checks vary by lender. Final approval still depends on the property, up-to-date documents and outstanding conditions. A pre-approved amount alone is not a reason to waive your financing condition.
Source: FCAC — Pre-approval and qualifying ↗
- Identification and borrower details.
- A recent employment letter, pay statements, tax slips or other income evidence appropriate to your situation.
- Statements tracing the down payment and gift documents if applicable.
- Balances and payments on existing debts.
- The purchase agreement, property listing and condominium documents where relevant.
The exact documents and statement periods will depend on your application. Working for yourself? See mortgage documents for self-employed borrowers. For our first call, your budget, timeline and questions are enough; I will explain how to provide the required documents afterwards.
Let’s plan your first home purchase.
We’ll talk through your budget, the documents you’ll need and what to check before making an offer. The lender sets the lending criteria and makes the final approval decision.
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