How Much Do You Need for a Down Payment in Ontario? (2025 Edition)

Thinking about buying a home in Ontario? One of the first questions we get from buyers is: “How much do I actually need for a down payment?”

The answer depends on a few things, your purchase price, whether it’s your primary residence, and if you’re putting down less than 20% (which requires mortgage insurance).

Let’s break it down so you know what to expect and how to start saving smarter.

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Down Payment Rules in Canada (For Primary Residences)

Canada uses a tiered system for down payments:

1. Homes $500,000 or less

Minimum down payment: 5%
Example:
$500,000 home → $25,000 down payment

2. Homes between $500,000 and $999,999

You pay 5% on the first $500K, and 10% on the rest
Example:
$700,000 home →

5% of first $500,000 = $25,000
10% of remaining $200,000 = $20,000
Total = $45,000

3. Homes $1,000,000 to $1,499,999

Same formula applies—5% on the first $500K, 10% on the rest.

Ready to begin your house hunt? Start by browsing our featured listings.

4. Homes $1,500,000+

Flat 20% minimum — no tiering here.
Example:

$1.5M home → $300,000 down
$1,499,900 home → ~$125,000 down

That $100 price difference? It could mean needing $175,000 more up front.
Why? Homes over $1.5M aren’t eligible for mortgage insurance, so lenders require the full 20% down.

Want even more valuable tips before beginning the home buying process? Look no further than the posts below:

Real-Life Examples (Spring 2025 Market | Guelph & Kitchener-Waterloo) 🏘️

Here’s what down payments typically look like based on current prices:

Home Type	Avg. Price	Min. Down Payment
Entry-Level Condo	$550,000	~$30,000
Townhouse	$650,000	~$40,000
Detached Home	$800,000	~$55,00

Examples Of Entry-Level Condos Currently For Sale

Examples Of Townhouses Currently For Sale in Guelph

Examples Of Detached Homes Currently For Sale in Guelph

If you’re looking in the $700K–$900K range, aim for a down payment of $40K–$65K.
And don’t forget to budget an extra 2–4% of your purchase price for closing costs (land transfer tax, legal fees, etc.).

How to Boost Your Down Payment (and Save on Taxes)

Feeling a little overwhelmed? You’re not alone. The good news: there are a few great ways to save faster—and reduce your tax bill while you’re at it.

1. Use a First Home Savings Account (FHSA)

Contribute up to $8,000/year (to a max of $40,000)
Contributions are tax-deductible
Grows tax-free—and withdrawals are tax-free when used to buy your first home
- Pro tip: You can stack this with your RRSP for maximum benefit.

2. Use Your RRSP (Home Buyers’ Plan)

Withdraw up to $60,000 tax-free per person (so $120K as a couple)
You won’t pay tax as long as you repay it within 15 years

3. Get a Gifted Down Payment

Many buyers get help from family
Lenders allow gifts, especially from immediate relatives
You’ll just need:
✅ A signed gift letter
✅ Proof that the funds are in your account before closing

Why buy in Guelph? The posts below will give you a few reasons:

What to Do Next

If you’re hoping to buy in the next 6–12 months, here’s where to start:

Talk to a mortgage specialist to see what you qualify for
Connect with a real estate agent (that’s us!) to create a custom affordability and savings plan
Start tracking the market so you’re ready when the right home pops up

Need Help?

We’ve helped hundreds of buyers get into the market, even when it felt out of reach.
If you’d like a custom plan to figure out what you can afford (and how to get there faster), reach out anytime. We’ll walk you through the process step by step.

Your dream home might be closer than you think.

Whatever your goals, our top Guelph real estate agents will help you realize them. Get in touch with us today at info@gowylde.ca or call 519-826-7109 for more information.

How Much Do You Need for a Down Payment in Ontario? (2025 Edition)