Calculate your down payment amount, mortgage loan amount, and monthly payment — and see if CMHC insurance applies.
Rates as of Q2 2025 (example)
This calculator shows how a given down payment percentage translates into an actual dollar amount, the resulting mortgage loan amount, and the monthly principal & interest payment on that loan — and flags whether your down payment is below the 20% threshold where mortgage loan insurance (CMHC insurance) would typically apply in Canada.
Your down payment amount is simply the home price multiplied by your chosen down payment percentage. The remainder becomes your mortgage loan amount, which is then amortized at your chosen interest rate and amortization period to estimate your monthly principal & interest payment.
Formula: Down Payment Amount = Home Price × (Down Payment % ÷ 100). Loan Amount = Home Price − Down Payment Amount. Monthly Payment = Loan Amount × [r(1+r)n] ÷ [(1+r)n − 1], where r is the monthly interest rate (Annual Rate ÷ 12 ÷ 100) and n is the number of monthly payments (Amortization Period × 12).
Example: On a CA$500,000 home with a 10% down payment, your down payment amount would be CA$50,000, leaving a loan amount of CA$450,000. At a 5.5% interest rate (example rate — enter your actual rate) over a 25-year amortization period, the monthly principal & interest payment would be roughly CA$2,763. Because the down payment is below 20%, this scenario would require mortgage loan insurance (see below). (Note: this example is for illustration purposes only and does not represent a loan offer.)
Minimum down payment requirements in Canada are tiered based on home price: for homes up to CA$500,000, the minimum is 5% of the purchase price; for the portion of the price between CA$500,000 and CA$1.5 million, the minimum rises to 10% on that portion; and for homes priced at CA$1.5 million or more, a minimum 20% down payment is required (insured mortgages are generally not available above this threshold). If your down payment is less than 20% of the home price (a "high-ratio" mortgage), you'll be required to purchase mortgage loan insurance — commonly called CMHC insurance — which adds a premium based on your loan-to-value ratio, typically added to your mortgage principal rather than paid upfront (see our CMHC Insurance Calculator to estimate this premium and add it to your loan amount). Reaching a 20% down payment avoids this insurance requirement and the associated premium, which is one reason many buyers aim for that threshold. Beyond the down payment itself, remember to budget separately for closing costs such as land transfer tax (see our Land Transfer Tax Calculator), legal fees, and home inspection costs, which are paid in addition to your down payment, not from it.
For homes priced up to CA\$500,000, the minimum down payment is 5% of the purchase price. For the portion of the price between CA\$500,000 and CA\$1.5 million, the minimum rises to 10% on that portion. For homes priced at CA\$1.5 million or more, a minimum 20% down payment is required, and mortgage insurance is generally not available above this price point.
A down payment below 20% means you have a "high-ratio" mortgage, which requires mortgage loan insurance (commonly called CMHC insurance, after Canada Mortgage and Housing Corporation, though other insurers also offer it). This insurance protects the lender, not you, and its premium - based on your loan-to-value ratio - is typically added to your mortgage principal, slightly increasing your loan amount and monthly payment.
This calculator focuses on the relationship between your down payment, loan amount, and monthly payment based on the home price alone. To estimate the CMHC insurance premium itself - which would be added to your loan amount if your down payment is below 20% - use our dedicated CMHC Insurance Calculator, then add that amount to the loan amount shown here for a more complete picture.
Reaching 20% avoids mortgage loan insurance premiums, which can save you money and avoid increasing your loan amount. However, saving for a larger down payment takes longer, during which home prices and interest rates may change. Whether to wait for 20% or buy sooner with mortgage insurance depends on your personal financial situation, the local housing market, and your own risk tolerance - there's no universally correct answer.
Indirectly, yes. A larger down payment means a smaller loan amount, which generally makes it easier to pass the mortgage stress test (which requires you to qualify at a higher rate than your contract rate) for a given income and existing debts. See our Mortgage Stress Test Calculator to check whether you'd likely qualify for the loan amount shown here.
Common sources include personal savings, a Tax-Free Savings Account (TFSA), the RRSP Home Buyers' Plan (which allows eligible first-time buyers to withdraw funds from an RRSP for a home purchase, subject to repayment rules), a First Home Savings Account (FHSA), or a gift from a family member (often requiring a gift letter from the lender). Each source has its own rules and tax implications worth understanding before relying on it.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute a mortgage offer or financial advice. The default interest rate is a sample value and does not reflect rates currently available from any specific lender. This calculator does not include CMHC insurance premiums, closing costs, or land transfer tax in the figures shown. Minimum down payment requirements and mortgage insurance rules are set by federal regulations and individual lenders and may change. Always obtain a personalised quote from a lender or mortgage broker before making borrowing decisions.