- Minimum down: 5% of the first $500,000 and 10% of the rest, up to a $1.5 million price.
- First-time buyers can take a 30-year amortization on an insured mortgage (since December 15, 2024).
- You must qualify at the greater of your rate + 2% or 5.25%.
- A pre-approval tells you a budget and may hold a rate; it is not a final approval.
1. Down payment and insurance
With less than 20% down your bank will require mortgage default insurance. The minimum down payment is 5% on the first $500,000 and 10% on the portion from $500,000 to $1.5 million; at $1.5 million or more you need 20%. The premium (0.60% to 4.00% of the loan with a traditional down payment) is usually added to the mortgage. Full table: insured mortgages.
| Price | Minimum down | Loan before premium | Loan-to-value | CMHC premium (4.00%) |
|---|---|---|---|---|
| $400,000 | $20,000 | $380,000 | 95.0% | $15,200 |
| $600,000 | $35,000 | $565,000 | 94.2% | $22,600 |
| $900,000 | $65,000 | $835,000 | 92.8% | $33,400 |
2. Amortization: 25 or 30 years
FCAC: with less than 20% down, the maximum amortization is 30 years if you are a first-time buyer and/or buying a new build, and 25 years in all other cases. A longer amortization lowers the payment but costs more interest, and CMHC has announced a 0.20% premium surcharge for first-time buyers choosing 30 years. Compare both in the payment calculator.
3. The stress test
Every big bank qualifies you at the greater of your contract rate + 2% or 5.25%, with CMHC’s 39% GDS and 44% TDS limits for insured mortgages. Run your numbers in the stress test calculator before you shop.
4. Pre-approval and choosing a lender
A pre-approval estimates how much you can borrow and may hold a rate for a period. Compare at least one big bank with a broker quote, and look past the rate: prepayment privileges, the penalty method and portability matter if your plans change. All six banks are compared on one page.
Rules change. Every figure on this page links to the official source and shows when we checked it. If something looks out of date, tell us and we will re-check.
Frequently asked questions
Who counts as a first-time buyer for the 30-year amortization?
The federal reforms of December 15, 2024 extended 30-year insured amortizations to all first-time buyers and all buyers of new builds. Lenders and insurers apply the detailed definition; ask your lender how it applies to you.
Can I use gifted money for the down payment?
Lenders commonly accept a gift from immediate family with a signed gift letter, but documentation rules vary by lender and insurer. Ask your bank which documents it needs.
Sources
- Saving for a down payment and mortgage loan insurance — FCAC, checked Oct 31, 2026
- Mortgage terms and amortization — FCAC, checked Oct 31, 2026
- Boldest mortgage reforms in decades come into force today — Department of Finance Canada, checked Oct 31, 2026
- CMHC mortgage loan insurance cost — CMHC, checked Oct 31, 2026
- CMHC revises homeowner mortgage loan insurance premiums — CMHC, checked Oct 31, 2026
- CMHC Purchase: homeowner mortgage loan insurance — CMHC, checked Oct 31, 2026
- Preparing to get a mortgage (stress test, GDS/TDS) — FCAC, checked Oct 31, 2026
- Getting pre-approved and qualifying for a mortgage — FCAC, checked Oct 31, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.