Down Payment Calculator Canada
Enter a home price and your planned down payment.
Important note
What waits below 20% down is mortgage default insurance (CMHC, Sagen or Canada Guaranty — your lender picks). The premium is a percentage of the mortgage, set by your down payment band: 4.00% with 5–9.99% down, 3.10% with 10–14.99% down and 2.80% with 15–19.99% down; at 20% it disappears. On a $600,000 home with 10% down, the $540,000 mortgage carries a $16,740 premium, which is added to the loan balance — that is why the mortgage figure above says “before other adjustments”. Ontario also charges 8% PST on the premium ($1,339.20 in this example), and that tax is due in cash at closing; it cannot be financed. Homes priced at $1.5 million or more cannot be insured at all and always need 20% down.
How this down payment calculator works
Two inputs produce five outputs. The down payment percentage is simply down payment ÷ home price × 100%, shown with one decimal — so $75,000 on a $750,000 home reads 10.0%. The mortgage figure is price − down payment, labeled "before other adjustments" because a mortgage default insurance premium, when required, is added on top of this loan by the lender rather than shrinking your down payment. Then come the three "more needed" lines: for each of the 5%, 10% and 20% milestones, the calculator shows max(price × milestone − your down payment, $0). If you have already passed a milestone, that line reads $0.00 instead of a negative number. These are flat reference points against the full price, not legal minimums: Canada's real minimums are tiered (5% of the first $500,000, 10% of the portion between $500,000 and $1.5 million, and 20% at $1.5 million or more), so check the tiered rule for your price.
The milestones are really insurance boundaries. Stepping from 9.99% to 10% down drops the default-insurance premium rate from 4.00% to 3.10% of the mortgage, and reaching 20% removes the premium entirely — so the “more needed” lines above are worth more than the down payment dollars themselves: each step also shrinks the premium charged on a smaller mortgage.
A worked example
Take a $750,000 home with a $75,000 down payment. The percentage is 10.0% and the mortgage before adjustments is $675,000. For the milestones: 5% of $750,000 is $37,500, already cleared, so $0.00 more; 10% is $75,000, exactly met, so $0.00 more; 20% is $150,000, leaving $75,000 more to reach the insurance-free benchmark. So this buyer sits exactly on the 10% milestone and is halfway, in dollars, to 20%. Under the tiered legal rule the same purchase needs only $50,000 minimum (5% of the first $500,000 plus 10% of the rest) — already cleared here; the calculator's flat 5% line ($37,500) is just a reference.
Three tips for planning your down payment
- Compare 20% against the minimum, not just the minimum against zero. Mortgage default insurance premiums run a few percent of the loan and are added to your mortgage — the calculator's "more needed for 20%" line shows exactly what it costs to skip them.
- Budget closing costs separately. In Ontario, land transfer tax, legal fees and adjustments typically add 1.5–4% of the price on top of your down payment; this tool does not include them.
- Judge the percentage on the price you actually shop. The same $75,000 is 15% of a $500,000 home but only 10% of a $750,000 one — dropping your price target can move you across a milestone without saving another dollar.
Frequently asked questions
Why is 20% the number everyone talks about?
At 20% down or more, mortgage default insurance is typically not required — the premium stays off your loan and more lenders compete for you. Below 20%, insurance is usually required and added to the mortgage — which is why this calculator tracks the distance to 20%.
How much does mortgage default insurance cost?
Premiums run a few percent of the mortgage amount — smaller down payments mean higher premiums — and the premium is added to the loan, quietly raising your payment. This calculator does not add it; ask a lender for current tables.
Can my down payment be a gift from family?
Often yes — Canadian lenders commonly accept gifted down payments from immediate family with a signed gift letter confirming the money does not have to be repaid. Lenders verify the source, so keep the paper trail. The math on this page is the same whatever the source.
Does this calculator include closing costs?
No. Land transfer tax, legal fees, title insurance and adjustments are separate and due on closing day. In Ontario they commonly total 1.5–4% of the price, so a $750,000 purchase may need another $11,000–$30,000 beyond the down payment.
Why are 5%, 10% and 20% shown?
They are common Canadian down-payment reference points; the exact minimum can depend on purchase price and mortgage rules.
Does this calculate closing costs?
No. Closing costs such as land transfer tax, legal fees and adjustments are separate.