Kofsky Mortgage

How much is a good down payment???

This is a great question and I get asked it all the time. Saving for your own down payment to buy a home can seem overwhelming. First-time homebuyers and even those who’ve gone through the process before can experience a ton of anxiety.

It does not have to be this way and it can be simple and easy. Just by making a few small changes to your budget or exploring a few financing options can allow you to save enough for your dream home.

Nothing is as central as your down payment; the property you can afford, the type of mortgage and your potential mortgage insurance is all affected by your down payment.

Minimum down payment requirements:

  • For homes that cost up to $500,000, the minimum down payment is 5%
  • For homes that cost more than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance
  • For homes that cost $1 million or more, the minimum down payment is 20%
  • Down payment amounts
Home price $450,000 $850,000$1,500,000
First $500,000 x 5% $22,500 $25,000 N/A
More than $500,000 and less than $1,000,000 x 10% N/A $35,000 N/A
More than $1,000,000 x 20% N/A N/A $300,000
Total down payment $22,500 $60,000 $300,000

You may want to start saving soon to make sure you have enough for that down payment

Lots of people say that 20% down is the best option, however, sometimes paying 20% down for your home may not be the best thing for you. Often providing 20% down will give you a higher rate than say 18%.


It is all about the risk for the lender and with a down payment of less than 20% the rate becomes insurable and thus less risky for the lender. Here is the thing… this isn’t always the case and sometimes a different approach is needed.

For more information feel free to contact me. I can give you a few tips and some help for you to save. I am happy to help find your simple mortgage solution. Call me anytime at 604-202-9913 OR email at kofsky.jordan@citywidemortgage.ca

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