Minimum Down Payment to Buy a Home

What’s the minimum down payment to buy a home or condo in Toronto?

The minimum down payment is set based on purchase price and it doesn’t matter if you are a first-time buyer or a move up buyer. The down payment requirement is 5% on the first $500,000, 10% on the difference between the $500,000 up to $999,999 and then if a property is over a million then it is 20% across the board. 

5% - First $500,000

10% - Difference Between $500,000 - $999,999

20% - $1 million

Here are three examples to help you understand the minimum down payment requirement.

Example #1

The buyer who’s buying a condo for $500,000. The minimum down payment is $25,000 which is 5%.

5% of $500,000 = $25,000 required down payment

Example # 2

A home buyer who is buying a semi detached for $900,000. The minimum down payment for that property is $65,0000. Which is 5% on the $500k which is $25,000 plus 10% on the difference which in this case is $400k. So, 10% of $400,000 is $40,000 for a total of a $65,000 down payment.

5% of $500,000 = $25,000

PLUS

10% of $400,000 = $40,000

Total down payment required: $65,000

Example # 3

Someone who is buying a house for $1.2m. In this case, because the property value is over a million, the minimum requirement is 20% across the board. So, 20% of the $1.2m puts the home buyer at $240,000 as a minimum down payment.

20% of $1.2m = $240,000 required down payment

Now keep in mind these minimum down payment requirements are for owner occupied properties. So, the buyer intends to live in the property. If the buyer is looking at an investment property, they will not live in, then the government requires 20% across the board. So, whether it’s a $500,000 condo, a $900,000 semi-detached, or a $1.3m duplex or triplex, the government requires the home buyer to have at least 20% down payment. If you have any questions regarding the minimum down payment to buy a home, a condo or an investment property, please feel free to connect.