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20% Down Payment Calculator Canada
Calculate what a 20% down payment means for different home prices.
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Enter your own assumptions in the related tool. This page explains what to consider before interpreting the result.
Open Down Payment Calculator →What to consider
Start with the numbers you actually know. For income questions, distinguish gross pay from net pay. For borrowing questions, consider the rate, term, fees, taxes and insurance that apply to your situation. For savings questions, treat the rate of return as an assumption rather than a guarantee.
For Canadian tax, payroll, registered-account and lending questions, rules can change and personal circumstances matter. Use official government, employer, lender or account records to confirm important figures.
What 20% down looks like at different Ontario home prices
Twenty percent is the magic number in Canada: it’s the line between an insured and an uninsured mortgage. Here’s the cash target at three common price points (down payment = price × 20%, mortgage = the remaining 80%).
| Home price | 20% down payment | Mortgage amount |
|---|---|---|
| $500,000 | $100,000 | $400,000 |
| $700,000 | $140,000 | $560,000 |
| $1,000,000 | $200,000 | $800,000 |
Note: homes priced at $1,000,000 or more require at least 20% down by law — they’re not eligible for insured mortgages, so the $200,000 figure isn’t optional there.
The real prize: skipping the CMHC insurance premium
With less than 20% down, you must buy mortgage default insurance (CMHC, Sagen or Canada Guaranty), and the premium is added to your loan. Take a $500,000 home with 10% down ($50,000): the $450,000 mortgage attracts a premium of about 3.1% — $13,950 — pushing the real loan to $463,950. With 20% down ($100,000), the mortgage is $400,000 and the premium is $0. The $13,950 you save also avoids interest: at 5% over 25 years that premium alone would add about $81.55/month, or $24,465 over the life of the loan.
Budget closing costs on top of the down payment
In Ontario, plan roughly 2–4% of the purchase price for closing costs on top of your down payment — $10,000–$20,000 on a $500,000 home. The biggest line item is usually land transfer tax (Ontario levies its own; the City of Toronto adds a second municipal tax), plus legal fees around $1,500–$2,500, title insurance and adjustments. First-time buyers get partial relief — see our first-time buyer costs guide for the full breakdown.
Frequently asked questions
How accurate is this 20% down payment calculator canada?
It is an educational estimate. Results depend on the assumptions you enter and may not match a payroll statement, lender decision, tax assessment or account statement.
What should I enter?
Use your own income, price, balance, rate, payment or contribution assumptions. For tax and payroll questions, verify important figures with official sources.
Can I use this for a final financial decision?
Use it as a planning tool. Confirm final amounts with the relevant employer, lender, financial institution or government source.
How much is a 20% down payment on a $700,000 house?
$140,000 ($700,000 × 20%), leaving a $560,000 mortgage.
How much CMHC premium do I save with 20% down on a $500,000 home?
About $13,950. At 10% down, the $450,000 mortgage carries a ~3.1% premium ($13,950) added to the loan; at 20% down the premium is $0 — and you also avoid the roughly $24,465 in payments that premium would cost at 5% over 25 years.
Can I buy a home in Ontario with less than 20% down?
Yes. The minimum is 5% on the first $500,000 and 10% on the portion from $500,000 to $999,999 — so a $700,000 home needs at least $45,000 down ($25,000 + $20,000, about 6.4%). The trade-off: mandatory mortgage insurance and a bigger loan.