Buyer journey · Guide 3 of 8
Down Payment & CMHC Insurance in Ontario, Explained
2 min readPublished Updated
Quick answer
The minimum down payment in Ontario is 5% of the first $500,000, 10% of the portion from $500,000 up to $1.5 million, and 20% on homes priced at $1.5 million or more. With less than 20% down you must have mortgage default insurance; CMHC's premium ranges from 2.8% to 4% of the loan and is usually added to the mortgage. Homes of $1.5 million or more cannot be insured, so they need 20% down.
Minimum down payment by price
Since December 15, 2024 the insured-mortgage price cap is $1.5 million (it was $1 million).
- Up to $500,000: 5% of the price
- $500,000 to under $1.5 million: 5% of the first $500,000 plus 10% of the rest
- $1.5 million or more: 20%
- $450,000 home: at least $22,500
- $800,000 home: at least $55,000
- $1,200,000 home: at least $95,000
- $1,600,000 home: at least $320,000
What mortgage default insurance costs
The insurance protects the lender, not you, but it lets you buy with less than 20% down. CMHC charges a one-time premium based on the size of the loan relative to the price:
- Loan of more than 80% up to 85% of the price: 2.8% of the loan
- Loan of more than 85% up to 90% of the price: 3.1% of the loan
- Loan of more than 90% up to 95% of the price: 4% of the loan
- Ontario adds provincial sales tax to the premium, payable in cash at closing
Should you put down 20%?
Twenty percent avoids the premium and gives you a smaller mortgage, but it takes longer to save and ties up cash you may need for closing costs or an emergency fund. Compare the premium with the cost of waiting, and keep enough cash for closing.
With 20% or more down, the lender sets the maximum amortization; insured mortgages are limited to 25 years, or 30 for first-time buyers and new builds.
Key takeaways: down payments and CMHC insurance
- Minimum: 5% of the first $500,000, 10% of the portion from $500,000 up to $1.5 million, and 20% on homes priced at $1.5 million or more.
- Under 20% down requires mortgage default insurance.
- CMHC premiums run from 2.8% to 4% of the loan when you put down less than 20%.
- Ontario charges sales tax on the premium, paid at closing.
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Down payments and CMHC insurance: frequently asked questions
How much down payment do I need in Ontario?
5% of the first $500,000, 10% of the portion from $500,000 up to $1.5 million, and 20% on homes priced at $1.5 million or more.
What is CMHC insurance?
Mortgage default insurance, required when you put down less than 20%. The premium (2.8% to 4% of the loan) is usually added to your mortgage.
How do I avoid CMHC insurance?
Put down 20% or more of the purchase price.
Sources
- Down payment — Financial Consumer Agency of Canada
- Boldest mortgage reforms in decades come into force today — Department of Finance Canada (Dec 15, 2024)
- Mortgage loan insurance premiums — CMHC
- Retail sales tax on insurance and benefits plans (8%) — Government of Ontario
- Choosing a mortgage that's right for you — Financial Consumer Agency of Canada
Published by Summitly, the website of Coldwell Banker Summit Realty, Brokerage, registered with the Real Estate Council of Ontario (RECO); an independently owned and operated Coldwell Banker franchise. Broker of Record: Waqar Afzal. Questions or corrections: our contact form. How we write and check these pages: editorial policy.
Cite this guide
Summitly Editorial. (2026, June 4). Down Payment & CMHC Insurance in Ontario, Explained. Summitly (Coldwell Banker Summit Realty, Brokerage). https://www.summitly.ca/guides/down-payment-cmhc-insurance-ontario
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