Can You Buy a $1.5M Home in Canada With Less Than 10% Down? (Updated 2026)

Let’s talk about minimum down payments for mortgages in Canada.

For homes under half a million, you’ll need 5% down payment. It doesn’t matter if it’s your first home, your fifth home, or more—it’s still a 5% minimum.

Between half a million and a million, it’s 5% on the first $500,000 and 10% on the rest. But here’s the big news.

As of December 15, 2024, homes under $1.5 million can now be insured. That means you can buy with less than 10% down and potentially get lower rates when your mortgage comes up for renewal in the future.

For a second home or a vacation home, the minimum down payment is still 5%. But for a rental property, you’ll need 20% down.

Are you thinking about refinancing? You can borrow up to 80% of your home’s value—unless you’re building a secondary suite. Then, starting January 15, 2025, you can refinance up to 90% of the value.

Do you have any questions about your down payment? Contact us today to learn more.

Video Highlights:

Understanding Minimum Down Payments in Canada
An overview of how minimum down payment requirements work and why they apply regardless of whether it’s your first home or a subsequent purchase.

Down Payment Rules for Homes Under $500,000
Explains the standard 5% minimum down payment requirement for properties priced below $500,000.

How Down Payments Work Between $500,000 and $1 Million
Breaks down the tiered structure: 5% on the first $500,000 and 10% on the remaining amount.

Major Update to Insured Mortgage Limits
Highlights the significant change effective December 15, 2024, allowing homes under $1.5 million to be insured.

Why Mortgage Insurance Can Be an Advantage
Explains how insured mortgages can allow lower down payments and potentially lead to lower interest rates at renewal.

Down Payment Requirements for Second Homes and Rentals
Clarifies that second or vacation homes still require only 5% down, while rental properties require a minimum of 20%.

Refinancing Rules and Equity Access
Covers how homeowners can refinance up to 80% of their home’s value, with expanded options for secondary suites.

New Refinancing Option for Secondary Suites
Introduces the January 15, 2025, update allowing refinancing up to 90% loan-to-value when building a secondary suite.

Takeaways

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  • The minimum down payment for homes under $500,000 is 5%, regardless of how many properties you own.
  • Homes priced between $500,000 and $1 million require a tiered down payment structure.
  • As of December 15, 2024, insured mortgages are available for homes up to $1.5 million.
  • Mortgage insurance can offer long-term benefits, including potentially lower renewal rates.
  • Second homes and vacation properties still qualify for a 5% minimum down payment.
  • Rental properties require a higher minimum down payment of 20%.
  • Refinancing is generally limited to 80% of a home’s value.
  • New rules allow refinancing up to 90% when adding a secondary suite.
  • Understanding down payment and refinance rules helps buyers plan smarter and sooner.
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