The down payment is often seen as the biggest hurdle to buying a first home. Yet the minimum is set by a precise rule, and it's often lower than people think. What tends to catch buyers off guard are the costs that come with a small down payment.
Down payment calculator
ToolThe legal minimum by price and property type, and what mortgage default insurance costs.
Estimate based on CMHC premiums and down payment rules in force on October 9, 2026. Your lender will confirm the exact amounts.
Minimum down payment in Quebec, by price
For an owner-occupied property with one or two units, the calculation works in tiers: 5% of the first $500,000, and 10% of the portion above that. A triplex or fourplex you live in requires 10% of the total price. Here's what that looks like in practice:
| Price and property type | Minimum down payment | % of price | Insurance premium (added to the loan) |
|---|---|---|---|
| $350,000 — 1 or 2 units | $17,500 | 5% | $13,300 (4%) |
| $500,000 — 1 or 2 units | $25,000 | 5% | $19,000 (4%) |
| $650,000 — 1 or 2 units | $40,000 | 6.2% | $24,400 (4%) |
| $900,000 — 1 or 2 units | $65,000 | 7.2% | $33,400 (4%) |
| $1,200,000 — 1 or 2 units | $95,000 | 7.9% | $44,200 (4%) |
| $900,000 — owner-occupied triplex or fourplex | $90,000 | 10% | $25,110 (3.1%) |
| $1,500,000 or more, or a building you won't live in | $300,000 and up | 20% | None (uninsured loan) |
A 5% or 20% down payment: what changes
With less than 20% down, the loan must be insured against default. The premium is a percentage of the amount borrowed, and it goes down as your down payment goes up:
- down payment of 5% to less than 10%: premium of 4% of the loan;
- down payment of 10% to less than 15%: premium of 3.1% of the loan;
- down payment of 15% to less than 20%: premium of 2.8% of the loan;
- down payment of 20% or more: no premium.
The premium is added to your mortgage, so you pay interest on it for the life of the loan. An amortization longer than 25 years, allowed for first-time buyers, adds 0.2% to the premium.
The catch: the provincial tax on the premium (9%, then 9.975% for premiums paid from 2027 on) can't be financed. It's paid in cash at the notary's office, on top of your down payment.
Example: for a $500,000 property, the minimum down payment is $25,000. The $475,000 loan comes with a $19,000 premium (4%), plus $1,710 in tax to pay at the notary ($1,895 in 2027). With a $100,000 down payment (20%), there's neither premium nor tax.
That doesn't mean waiting until you have 20% always pays off: during those years of saving, prices and your rent keep moving. It's a trade-off to work through with a mortgage broker, numbers in hand. See also the difference between borrowing capacity and a comfortable budget.
Can you buy a house with no down payment?
In practice, no. An insured loan requires the minimum described above, and it has to come from a source the lender accepts. What's sometimes marketed as a "no down payment" purchase actually relies on money from somewhere else: an RRSP withdrawal under the HBP, an FHSA, a family gift. Those are real down payments; they just don't come out of a savings account.
Be wary of arrangements where the down payment is borrowed without the mortgage lender knowing: a hidden debt distorts the calculation of what you can afford to repay and can jeopardize your loan approval.
Accepted sources: savings, FHSA, HBP and gifts
- Personal savings: the lender usually asks for statements showing the history of the funds.
- First Home Savings Account (FHSA — CELIAPP in French): up to $40,000 per person, with a tax-free withdrawal and nothing to pay back.
- Home Buyers' Plan (HBP): up to $60,000 per person withdrawn from your RRSP, repaid over 15 years.
- A gift from an immediate family member, backed by a gift letter.
The FHSA and the HBP can both be used for the same home, and a couple can double the limits. See how to combine the FHSA and HBP →
The gift letter
A gift from a parent or another immediate family member can be used as a down payment, as long as you provide a signed gift letter confirming it isn't a loan to be repaid. Most lenders have their own template.
Don't forget closing costs
Your down payment only covers the purchase price. The welcome tax, the notary, the inspection, tax adjustments and, where applicable, the tax on the insurance premium come on top and are paid in cash. Keep a separate margin for these costs. Calculate your total closing costs →
Official sources: First Home Savings Account (CRA), Home Buyers' Plan (CRA).
Frequently asked questions
What is the minimum down payment on a house in Quebec?
For a one- or two-unit property you'll live in, it's 5% of the first $500,000 of the price and 10% of the portion above that. From $1,500,000, or for a building you won't live in, the minimum is 20%.
Is it better to put 5% or 20% down?
With 20% or more, you avoid the mortgage default insurance premium and the tax on that premium payable at the notary. A smaller down payment lets you buy sooner, though: the right choice depends on your situation and is worth confirming with a mortgage broker.
Can I use a gift for my down payment?
Yes. Lenders accept a gift from an immediate family member, as long as you provide a signed gift letter confirming the money doesn't have to be paid back.
