Mortgage Down Payment Calculator: Estimate Your Deposit

If you plan to buy a property, you probably already know you’ll need a down payment. This is the portion of the purchase price you pay up front and is subtracted from the total amount you borrow to buy the home.

Exactly how much you must save for a down payment depends on the price of the home you want and the minimum down payment rules in Canada. While government rules set minimums, the true amount you should aim for depends on your budget, your financial goals and how much you want to reduce your long‑term borrowing costs.

What’s a mortgage down payment?

Many buyers cannot pay the full purchase price of a home in cash. When that happens, lenders expect a down payment—an initial sum paid at closing. The down payment reduces the amount you need to borrow, and because your mortgage is calculated by subtracting the down payment from the purchase price, larger down payments mean smaller loans and lower interest costs over the life of the mortgage.

The down payment is only one part of home ownership costs. If you don’t pay the purchase price in full, you’ll take out a mortgage—a specialized loan—to cover the remaining balance. That mortgage is repaid, typically with interest, over a set term and amortization period.

Beyond reducing the total loan amount, a larger down payment can influence the interest rate you qualify for, the monthly payment size, and whether you must pay mortgage default insurance. In short, saving more up front can reduce your ongoing housing costs and improve your financial flexibility.

How to calculate your mortgage down payment

In Canada, minimum down payment requirements depend on the purchase price of the property:

• If the purchase price is under $500,000, the minimum down payment is 5% of the purchase price.
• If the purchase price is between $500,000 and $1,000,000, the minimum down payment is 5% of the first $500,000 plus 10% of the portion above $500,000.
• If the purchase price is $1,000,000 or more, the minimum down payment required is 20% of the full purchase price.

Here are a few examples to make those rules clearer. For a $450,000 home, the minimum down payment is 5%—equal to $22,500. For a $700,000 home, you would pay 5% on the first $500,000 ($25,000) and 10% on the remaining $200,000 ($20,000), for a total minimum down payment of $45,000.

If the home price is $1,000,000 or more, the minimum is 20% of the full purchase price. That means a buyer must have a significant down payment available—either saved cash or equity from another property—to complete such transactions without larger financing arrangements.

Remember that these are minimums. Putting more than the minimum down payment reduces how much you borrow and lowers your monthly payments and total interest paid over the life of the mortgage.

What is mortgage default insurance?

If you buy a home in Canada and your down payment is less than 20% of the purchase price, mortgage default insurance is typically required. This insurance protects the lender if you default on the mortgage. The insurance premium is calculated as a percentage of the mortgage amount, and the exact rate depends on the size of the down payment relative to the purchase price: the larger the down payment, the smaller the premium.

Mortgage default insurance allows buyers with smaller down payments to access mortgage financing, but it does add cost. These premiums are usually added to the mortgage amount and repaid over time, increasing your overall borrowing cost. That’s why many buyers aim to reach the 20% threshold: doing so avoids mortgage default insurance altogether and reduces long‑term costs.

Other mortgage tools and calculators

• Mortgage affordability tools help estimate how much home you can comfortably afford based on your income and expenses.
• Payment calculators show expected monthly mortgage payments for different loan amounts, rates and amortization periods.
• Land transfer tax calculators estimate one‑time closing costs that vary by province and municipality.
• Mortgage insurance calculators estimate the premium you would pay when your down payment is under 20%.
• Refinance and renewal calculators help you compare options if you want to change lenders or renegotiate terms.

Using calculators and speaking with a lender or mortgage professional can help you understand how different down payment amounts affect your mortgage, monthly budget and overall cost of home ownership. Planning ahead—saving for a larger down payment, comparing loan options and accounting for closing costs—will make the home‑buying process smoother and more affordable in the long run.