Updated July 28, 2026. You do not always need a 20% down payment to buy a home in Canada. The minimum depends on the purchase price, while a lender may require more based on the property, credit, income, and mortgage program. What is a down payment? A down payment is the money you contribute toward the purchase price of a home. Your mortgage covers the remaining eligible amount. The size of the down payment affects how much you borrow, whether mortgage default insurance is generally required, and the size of the monthly payment. Minimum down payment in Canada Home purchase price Minimum down payment $500,000 or less 5% of the purchase price More than $500,000 but less than $1.5 million 5% of the first $500,000, plus 10% of the amount above $500,000 $1.5 million or more 20% of the purchase price For example, the minimum down payment on a $600,000 home is: These are minimums. A lender may require a larger down payment depending on the application. See the Financial Consumer Agency of Canada down-payment guidance. What happens if you put down less than 20%? If the down payment is below 20%, mortgage default insurance is typically required. The lender arranges this insurance, and the premium may be added to the mortgage. The insurance protects the lender, not the borrower. The purchase price, property type, occupancy, credit profile, and lender guidelines can affect eligibility. Reviewing the complete application before making an offer can prevent surprises. Can you use the Home Buyers’ Plan? Eligible buyers can currently withdraw up to $60,000 from an RRSP through the Home Buyers’ Plan. A couple buying together may each be able to use the program if both meet the conditions. Participants must meet the program rules and generally repay the amount to their RRSP over time. The Home Buyers’ Plan may also be used with an eligible First Home Savings Account withdrawal for the same qualifying home. Review the Canada Revenue Agency Home Buyers’ Plan rules. Is the First-Time Home Buyer Incentive still available? No. The federal First-Time Home Buyer Incentive was discontinued in 2024 and is no longer accepting applications. Should you make a larger down payment? A larger down payment can reduce the mortgage amount and monthly payment, but using all available savings may leave too little for closing costs, repairs, moving expenses, and emergencies. The right target should support both the purchase and life after closing. Get a mortgage readiness check in Brampton Not sure what down payment makes sense for your situation? Request a free 10-minute mortgage readiness check with Jatin Sood. Jatin SoodMortgage Agent Level 2, Lic. #M24002757The Mortgage Centre – Hard Money Approvals, Brokerage #12880Independently Owned & Operated+1 647-569-8109 This article provides general information and is not financial, legal, or tax advice. Mortgage qualification and program eligibility depend on individual circumstances and lender requirements.

Choosing between a fixed and variable mortgage is one of the biggest decisions when securing a home loan. Both options have their advantages, but the right choice depends on your financial goals, risk tolerance, and market conditions. Let’s break it down so you can make an informed decision. What is a Fixed-Rate Mortgage? A fixed-rate mortgage locks in your interest rate for the entire loan term (e.g., 3, 5, or 10 years). This means your monthly payments remain the same, providing stability and predictability. Pros:✔ Predictable payments for better budgeting✔ Protection from interest rate hikes✔ Ideal for long-term financial planning Cons:✘ Usually higher initial interest rates than variable mortgages✘ Less flexibility if rates drop during your term A fixed-rate mortgage is best for homebuyers who prefer stability and want to avoid fluctuations in their monthly payments. What is a Variable-Rate Mortgage? A variable-rate mortgage has an interest rate that changes based on the market (typically tied to the Bank of Canada’s prime rate). If interest rates go down, so do your payments—but if they go up, you’ll pay more. Pros:✔ Lower initial rates compared to fixed mortgages✔ Potential to save money if interest rates decrease✔ More flexible prepayment options with some lenders Cons:✘ Monthly payments may increase if rates rise✘ Harder to budget due to fluctuating payments A variable-rate mortgage is ideal for borrowers who can handle some risk and want to take advantage of potentially lower rates over time. Which One Should You Choose? Here’s how to decide: Final Thoughts Both mortgage types have their benefits, and the right choice depends on your financial situation and risk tolerance. Still unsure which option is best for you? Let’s discuss your goals and find the perfect mortgage for your needs.

Buying a home is exciting, but getting mortgage approval can sometimes feel overwhelming. A smooth and quick approval process depends on how well-prepared you are. Follow these five key steps to increase your chances of securing your mortgage faster. 1. Check & Improve Your Credit Score Lenders use your credit score to determine your reliability as a borrower. A higher score means better mortgage rates and faster approvals. Check your credit report for errors, pay down outstanding debts, and make payments on time. If your score is low, improving it even slightly can make a big difference. 2. Get Pre-Approved Before House Hunting A mortgage pre-approval gives you a clear budget and shows sellers you’re a serious buyer. Lenders will review your finances and provide an estimate of how much you can borrow. Having a pre-approval speeds up the process once you find your dream home and helps avoid delays. 3. Gather All Necessary Documents in Advance Delays often happen because borrowers don’t have the right paperwork ready. Ensure you have:✔ Proof of income (pay stubs, tax returns)✔ Bank statements✔ Employment verification✔ Credit history✔ Debt and asset details Being organized will make the approval process smooth and hassle-free. 4. Lower Your Debt-to-Income Ratio Lenders look at how much debt you have compared to your income. A high debt-to-income ratio can slow down approval or lead to higher interest rates. Pay off existing loans, avoid taking on new debt, and keep credit card balances low before applying for a mortgage. 5. Avoid Major Financial Changes Before closing on a mortgage, avoid making big purchases like a car or new furniture, changing jobs, or opening new credit accounts. These actions can affect your credit score and financial stability, which might delay or even jeopardize your mortgage approval. Final Thoughts By preparing ahead of time, improving your credit score, and keeping your finances stable, you can speed up the mortgage approval process. Need expert guidance? Let’s get you approved faster and stress-free!