The video is in Russian. This English companion article summarizes the same topic and adds current Canada/Ontario first-time-buyer rules.
1. Minimum down payment in Canada
The minimum down payment depends on the purchase price:
| Home price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| More than $500,000 and below $1.5 million | 5% of the first $500,000 + 10% of the portion above $500,000 |
| $1.5 million or more | 20% |
Minimum down-payment examples
A $1.2 million home requires a minimum $95,000 down payment, while a $1.4 million home requires $115,000. At $1.5 million or more, the minimum becomes 20%.
2. The down payment is not your total cash requirement
The Financial Consumer Agency of Canada advises buyers to prepare for upfront and closing costs in addition to the mortgage. As a broad planning range, it suggests approximately 1.5%–4% of the purchase price. The exact amount depends on the property, municipality and transaction.
These costs may include:
- Ontario Land Transfer Tax;
- Municipal Land Transfer Tax for properties inside the City of Toronto;
- legal fees and title insurance;
- home inspection and appraisal where required;
- property-tax, condo-fee and utility adjustments at closing;
- applicable tax on mortgage default insurance premiums;
- moving, utility setup and immediate post-closing expenses.
3. A practical way to estimate total cash
The figures below are not a mortgage approval or closing statement. They simply show why a buyer should budget beyond the down payment.
| Home price | Min. down payment | 1.5%–4% closing-cost range | Illustrative cash range* |
|---|---|---|---|
| $600,000 | $35,000 | $9,000–$24,000 | $44,000–$59,000 |
| $800,000 | $55,000 | $12,000–$32,000 | $67,000–$87,000 |
| $1,000,000 | $75,000 | $15,000–$40,000 | $90,000–$115,000 |
| $1,200,000 | $95,000 | $18,000–$48,000 | $113,000–$143,000 |
*Illustrative only. The range uses the minimum down payment and the federal 1.5%–4% closing-cost planning guideline. It does not include a separate emergency fund, furniture, renovations or transaction-specific expenses.
4. Your offer deposit is not a second down payment
Buyers often confuse the deposit with the down payment. The deposit is paid according to the terms of the Agreement of Purchase and Sale and is ultimately credited toward the buyer's funds at closing. It is not an extra payment on top of the down payment, but it has to be liquid and available much earlier.
Practical point: before actively making offers, know where the deposit will come from and how quickly those funds can be transferred. Do not assume money locked in an investment account can always be accessed immediately.
5. What changes when your down payment is below 20%
With a down payment below 20%, mortgage loan insurance is generally required for an eligible insured mortgage. The insurance premium is often added to the mortgage balance, which increases the debt and long-term financing cost. Applicable tax on the insurance premium may need to be paid at closing.
Eligible first-time buyers can also access 30-year amortizations on insured mortgages. A longer amortization may reduce the monthly payment, but it generally increases the total interest paid over time.
6. First-time homebuyer programs that may help
First Home Savings Account (FHSA)
An FHSA gives eligible buyers up to $8,000 of annual participation room and a $40,000 lifetime limit. Qualifying contributions are generally deductible, and a qualifying withdrawal for a first home can be tax-free.
Home Buyers' Plan (HBP)
The HBP can allow an eligible buyer to withdraw up to $60,000 from RRSPs to buy or build a qualifying home. A buyer may use the HBP and a qualifying FHSA withdrawal for the same home when the conditions of both programs are met.
7. Ontario and Toronto land transfer tax are different
Ontario buyers pay provincial Land Transfer Tax. An eligible first-time homebuyer may receive a refund of up to $4,000. Properties inside the City of Toronto are also subject to Municipal Land Transfer Tax; an eligible first-time buyer may receive a city rebate of up to $4,475.
That means two homes with the same price — one in Mississauga, Oakville or Burlington and one inside Toronto — can have materially different closing costs.
8. Do not use every dollar you have at closing
A mortgage approval does not mean it is wise to use all available savings for the purchase. New homeowners may face immediate costs for repairs, furniture, appliances, property tax, condo fees, utilities and unexpected maintenance.
A strong first-home budget answers two questions: “How much can I buy?” and “How much cash will I still have after I receive the keys?”
9. Where first-time buyers can look in the GTA
Entry prices and housing types vary widely across the region. Victoria primarily works with buyers in Oakville, Burlington, Milton, Mississauga, Etobicoke and Hamilton, with Toronto also served. Adjusting the location or property type can sometimes reduce the cash needed to enter the market without giving up your most important priorities.
Official references and current rules
Mortgage-insurance rules, rebates and first-time-buyer programs can change. Confirm current details with your mortgage professional, lawyer and official government sources before making a purchase decision.
- Canada.ca — minimum down payment
- Canada.ca — home buying and closing costs
- Canada.ca — Home Buyers' Plan
- Canada.ca — First Home Savings Account
- Ontario — first-time homebuyer Land Transfer Tax refund
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