Your First Home Starts with a Plan

In Canada, the minimum down payment depends on the price of the home:

• 5% for homes up to $500,000
• 10% on the portion between $500,000 and $999,999
• 20% for homes priced at $1 million or more

If your down payment is less than 20%, mortgage default insurance (like CMHC insurance) is required.

Not sure where you stand? We’ll help you calculate what you need, explore your options, and build a plan that works for your budget.

In addition to your down payment, you’ll need to budget for several closing and upfront costs, including:

• Legal fees
• Land transfer tax (varies by province; rebates available for first-time buyers)
• Home inspection and appraisal
• Title insurance
• Mortgage default insurance (if your down payment is less than 20%)
• Adjustments (such as prepaid property taxes or utilities)
• Moving expenses and utility hookups
  
  A good rule of thumb is to set aside 1.5% to 4% of the purchase price for these costs.

At Valko Financial, we’ll walk you through all expected expenses so there are no surprises—and you can plan with confidence.

Yes! There are two common ways to boost your down payment:

1. RRSPs through the Home Buyers' Plan (HBP):
   If you're a first-time homebuyer (or haven’t owned a home in the last four years), you can withdraw up to $60,000 tax-free from your RRSPs to put toward your down payment. You’ll have 15 years to repay the amount back into your RRSP.
2. A gifted down payment from family:
   Many buyers receive financial help from family in the form of a gifted down payment. Lenders typically require a signed gift letter confirming the funds are a gift—not a loan—and that they don’t need to be repaid.