Down Payment: How Much You Need to Buy in Calgary

Minimum Down Payment

In Canada the minimum down payment is set as a percentage of the purchase price, and it steps up as the price rises. Homes above a certain price threshold require a larger minimum, and above a higher threshold mortgage default insurance is not available at all — which means a substantially larger down payment.

Because those thresholds and percentages are set federally and can change, we do not restate them here as fixed numbers. The calculator below applies the current rules, and Al confirms them for your specific purchase.

What the Size of Your Down Payment Changes

• Whether you need mortgage default insurance. Below a certain equity threshold it is generally required, and the premium is usually added to the mortgage.
• Your monthly payment — a larger down payment means a smaller loan.
• What you qualify for — sometimes materially.
• Your amortisation options, which can differ between insured and uninsured mortgages.

Calculate mortgage default insurance →

Where a Down Payment Can Come From

Lenders care about the source, not just the amount, and they will ask for it to be traced. Common sources include:

• Savings, including a First Home Savings Account
• RRSP funds withdrawn under the Home Buyers' Plan
• A gift from an immediate family member, usually with a signed gift letter
• Proceeds from the sale of another property
• Investments, once liquidated

Money that appears in an account shortly before closing without a traceable history tends to create delays. If a gift is coming, tell your mortgage professional early.

Bigger Isn't Automatically Better

Putting every available dollar into the down payment can leave you without a cushion for closing costs, moving, immediate repairs or an emergency.

There is a real trade-off between a lower monthly payment and having money left after possession day. It is worth deciding deliberately rather than by default.