Down Payment & CMHC Insurance in Ontario, Explained
Quick answer
In Ontario the minimum down payment is 5% on the first $500,000 of price, 10% on the portion from $500,000 to $999,999, and 20% on homes of $1,000,000 or more. If you put down less than 20%, you must buy CMHC (or equivalent) mortgage default insurance — a premium of roughly 2.8%–4.0% of the loan that's added to your mortgage. Putting down 20% avoids the insurance entirely.
Minimum down payment by price
- 5% on the first $500,000
- 10% on the portion from $500,000–$999,999
- 20% on homes $1,000,000 and over
What CMHC insurance is
Mortgage default insurance protects the lender if you stop paying — it's required when you put down less than 20%. The premium (about 2.8%–4.0% of the loan, lower with a bigger down payment) is usually added to your mortgage and paid off over time.
Should you put down 20%?
Twenty percent avoids the insurance premium and lowers your payment, but it ties up cash. Many buyers put down less to buy sooner and accept the premium. Model both before deciding.
Key takeaways
- Minimums: 5% / 10% / 20% by price band.
- Under 20% down requires CMHC insurance.
- The premium is ~2.8%–4.0% of the loan, added to the mortgage.
- 20% down avoids insurance but uses more cash.
Frequently asked
How much down payment do I need in Ontario?+
5% on the first $500,000, 10% on the portion to $999,999, and 20% on homes of $1,000,000 or more.
What is CMHC insurance?+
Mortgage default insurance required when you put down less than 20%; the premium (roughly 2.8%–4.0% of the loan) is typically added to your mortgage.
How do I avoid CMHC insurance?+
Put down 20% or more on a home under $1,000,000.