Calculate the minimum
The model applies 5% up to $500,000, 10% on the portion above $500,000 and below $1.5 million, and 20% at $1.5 million or more.
Specialized Financial Planning Calculators
Down Payment Planner Canada
Calculate the current minimum down payment, preferred target, closing-cost reserve, projected savings, shortfall, and monthly contribution required for a planned purchase.
Current minimum calculationPreferred down-payment targetClosing-cost reserveSavings projection
Calculation inputs
Plan the cash needed to buy
Compare the current Canadian minimum down payment with your preferred target, closing-cost reserve, savings, and timeline.
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%
$
$
$
months
Savings growth assumption
%
How the calculation works
Understand the formula before relying on the result
Respect the preferred target
The planned down payment is the greater of the calculated minimum and the user-selected percentage.
Add cash-to-close reserve
The entered closing-cost reserve is added to create a broader purchase cash target.
Project savings
Current savings and monthly contributions compound monthly until the planned purchase date.
Interpret the result
Minimum does not mean sufficient
A lender, insurer, property, credit profile, or self-employed application may require more cash.
Cash-to-close is broader
Land transfer tax, legal fees, adjustments, appraisal, inspection, moving, and reserves are separate from the down payment.
Twenty percent changes the structure
A down payment of at least 20% generally avoids high-ratio mortgage default insurance, subject to lender requirements.
Source matters
Savings, gifts, RRSP withdrawals, sale proceeds, and borrowed funds require different documentation and may receive different treatment.
Common mistakes
- Saving only the minimum down payment and nothing for closing costs.
- Ignoring deposit timing before mortgage funds arrive.
- Assuming every source of funds is acceptable.
- Using investment values without allowing for market changes and tax.
- Planning to close with no post-closing reserve.
What lenders review
- Source, ownership, history, and transfer trail of funds.
- Gift letters and donor evidence where applicable.
- Purchase price, property type, occupancy, and insurance eligibility.
- Credit, income, debts, and stress-test qualification.
- Closing costs and post-closing liquidity.
Planning tips
- Keep transaction savings separate from the emergency fund.
- Add the Land Transfer Tax and Closing Cost calculator results.
- Maintain a clear account trail for at least the lender-required period.
- Stress the target for a higher purchase price or delayed closing.
- Check mortgage-insurance eligibility before relying on the minimum.
Connected HopeWell knowledge
Connect the down payment planner to the mortgage decision
Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.
Calculation pathway
Related mortgage calculators
Continue into qualification, purchase costs, equity, refinancing, HELOC planning, and mortgage comparison using the connected calculators below.
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Ontario Closing Cost Calculator
Build a detailed cash-to-close estimate with taxes, legal fees, adjustments, insurance, and moving costs.
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Ontario Land Transfer Tax Calculator
Calculate Ontario and Toronto land transfer taxes, first-time buyer rebates, and non-resident speculation tax.
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Mortgage Affordability Calculator Canada
Estimate a maximum purchase price using income, debts, down payment, housing costs, mortgage insurance, and qualification limits.
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CMHC Insurance Calculator Canada
Estimate mortgage default-insurance premium, premium tax, insured mortgage amount, and payment impact.
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Emergency Fund Calculator Canada
Size an essential-expense reserve, measure current coverage, calculate the savings gap, and estimate time to target.
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Mortgage Payment Calculator Canada
Calculate payments, compare frequencies, model prepayments, review amortization schedules, and export a detailed PDF.
Frequently asked questions
Questions about this calculation
What is the minimum down payment in Canada?
For eligible purchases, the current federal schedule is 5% up to $500,000, plus 10% of the portion from $500,000 to below $1.5 million; purchases of $1.5 million or more require at least 20%.
Does a 20% down payment guarantee approval?
No. Income, credit, debts, property, appraisal, source of funds, and lender policy still apply.
Are closing costs part of the down payment?
No. They are separate cash requirements, which is why this planner adds a user-entered reserve.
Can the down payment be gifted?
Many programs permit gifts from eligible donors with documentation, but rules and acceptable relationships vary.
Why can the lender require more than the minimum?
Property, credit, self-employment, mortgage-insurance, debt-service, and lender-risk factors can lead to a higher requirement.