It is the first question almost everyone asks Cecilia Guo, REALTOR®, before they start looking at homes for sale in Keswick, Vaughan, or North York. Buying a home in Ontario does not always require 20 percent down. The rules are tiered, and knowing your tier changes how you shop.

The 2026 Ontario Down Payment Rules

Canada's minimum down payment depends on the purchase price:

• Up to $500,000: 5 percent of the price
• $500,000 to $1,499,999: 5 percent on the first $500,000, plus 10 percent on the portion above it
• $1,500,000 and up: 20 percent, with no mortgage default insurance available

Any down payment below 20 percent requires mortgage default insurance through CMHC or a private insurer. The premium is added to your mortgage balance, and Ontario charges provincial sales tax on that premium at closing. Cecilia Guo recommends confirming your exact figures with a licensed mortgage professional, since lender criteria vary.

A Real Example From the Ontario Housing Market 2026

According to TRREB, the average GTA selling price in August 2026 was $993,410. At that price, the minimum down payment works out to roughly $74,300: $25,000 on the first $500,000 and about $49,300 on the balance. That is a very different number than the $198,000 many buyers assume they need.

How the Rules Play Out in Each Market

Keswick real estate often falls below the $500,000 to $800,000 range, which keeps minimum down payments among the most accessible in York Region. Vaughan real estate, especially in Woodbridge, Maple, and Kleinburg, frequently lands in the blended tier. North York real estate ranges widely, from condos near Yonge and Sheppard to detached homes that cross the $1.5 million line. Cecilia Guo helps buyers understand which tier a specific property falls into before an offer is written.

Where Your Down Payment Can Come From

Lenders accept savings, First Home Savings Account withdrawals, the RRSP Home Buyers' Plan, and gifts from immediate relatives with a signed gift letter. Cecilia Guo also reminds buyers to budget 1.5 to 4 percent of the purchase price for closing costs, including Ontario land transfer tax and legal fees.

Explore the full process on Cecilia's buying a home page, or browse current homes for sale in Vaughan.

Frequently Asked Questions