To plan a condo down payment, check two things: the minimum required for an eligible owner-occupied purchase and the amount a lender will approve you to borrow. The table below shows the minimum-payment formula. Meeting it does not guarantee approval; a lender or mortgage insurer may require more.
Quick Summary
- For an eligible owner-occupied purchase, the minimum is 5% on the first $500,000 and 10% on the portion above $500,000 while the price is below $1.5 million.
- At $1.5 million or more, the minimum down payment is 20% of the purchase price.
- A $600,000 purchase has a $35,000 minimum down payment: $25,000 + $10,000.
- The Home Buyers’ Plan (HBP) allows an eligible individual to withdraw up to $60,000 from an RRSP, subject to CRA conditions and repayment rules.
Minimum Down Payment for an Eligible Owner-Occupied Home
This table applies to eligible owner-occupied purchases. Rental and investment properties may have different lending and mortgage-insurance requirements.
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| More than $500,000 and less than $1,500,000 | 5% of the first $500,000, plus 10% of the amount above $500,000 |
| $1,500,000 or more | 20% of the purchase price |
Example: $600,000 condo
- 5% of the first $500,000 = $25,000
- 10% of the remaining $100,000 = $10,000
- Minimum down payment = $35,000
For comparison, the formula gives $25,000 at $500,000; $75,000 at $1 million; $124,999.90 at $1,499,999; and $300,000 at $1.5 million. These are minimum down-payment calculations only. Closing costs and lender qualification are separate.
Using the Home Buyers’ Plan (HBP)
The HBP lets an eligible individual withdraw up to $60,000 from their RRSP to buy or build a qualifying home. This is an RRSP withdrawal under a repayment program, not a grant. You must meet CRA participation and withdrawal requirements, including the qualifying-home and first-time-buyer rules or an applicable exception. You generally repay HBP withdrawals to your RRSP, PRPP or SPP over up to 15 years; temporary rules can affect when repayments begin. Any amount not repaid as required may be included in taxable income. Check the current CRA rules before relying on an HBP withdrawal.
A qualifying withdrawal from a First Home Savings Account may also be available for the same home if its separate conditions are met. The HBP and FHSA have different eligibility and tax rules.
Programs and older incentives
The federal First-Time Home Buyer Incentive (FTHBI), a shared-equity mortgage program, is closed to new applications. Do not include it as a currently available source of down-payment funds. Eligible FHSA withdrawals and HBP withdrawals may form part of the funds you use for a down payment, subject to each program’s separate CRA eligibility and withdrawal rules. First-time home buyer tax credits are separate tax relief and are not down-payment funds.
Mortgage insurance and lender approval
For an eligible owner-occupied purchase below $1.5 million, a down payment below 20% generally requires mortgage loan insurance. It protects the lender, not the buyer. The premium is usually added to the mortgage or paid at closing; in Ontario, provincial sales tax on the premium is payable separately. Meeting the minimum does not guarantee approval: your lender still reviews the stress test, income, debts, credit, property and source of funds. Ask your lender to confirm the required down payment, insurance premium and any additional conditions.
Budget beyond the down payment
Before making an offer, ask your lender to confirm the down payment, insurance premium and related taxes, and ask your real-estate lawyer to estimate land transfer taxes, legal fees and closing adjustments. Check HBP or FHSA eligibility before counting those funds. Add moving costs and a contingency, then compare the total with the cash you have available.
Frequently Asked Questions
What is the minimum down payment on a $600,000 condo?
For an eligible owner-occupied purchase, it is $35,000: 5% of the first $500,000 ($25,000) plus 10% of the remaining $100,000 ($10,000).
How much down payment is required at $1.5 million?
At a purchase price of $1.5 million or more, the minimum down payment is 20% of the full purchase price. At exactly $1.5 million, that is $300,000.
Can I use the Home Buyers’ Plan for a condo?
Possibly. An eligible individual may withdraw up to $60,000 from an RRSP for a qualifying home, subject to CRA eligibility, withdrawal and repayment requirements. Confirm your circumstances with CRA or a tax professional.
Is the First-Time Home Buyer Incentive still available?
No. The shared-equity First-Time Home Buyer Incentive stopped accepting new applications in 2024. Previously approved participants continue under their existing agreements.
Official references: Financial Consumer Agency of Canada: minimum down payment; CMHC: homeowner mortgage-insurance requirements; Canada Gazette mortgage-insurance regulation; CRA: Home Buyers’ Plan; CMHC: First-Time Home Buyer Incentive status.
