Start saving for your mortgage down payment

The more you save, the better your options will be.

Saving the down payment to buy a home can seem overwhelming. First-time home buyers and those who've gone through the process before can experience the same anxiety. But it doesn’t have to be that way.

Sometimes saving for a down payment is as simple as making small changes to your budget or exploring other financing options. Both could help you save more money and reduce the amount of mortgage you need.

The amount of your down payment influences the property you can afford, the type of mortgage you get and whether you need to purchase mortgage default insurance.

Depending on your goal, you may consider ways to save more for your down payment or find alternate funding options. Find out how much you can afford to spend on your mortgage with our mortgage affordability calculator.

Minimum down payment requirements:

For homes that cost up to $500,000, the minimum down payment is 5%
For homes that cost more than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance
For homes that cost $1 million or more, the minimum down payment is 20%

Down payment amounts

Home price	$450,000	$850,000	$1,500,000
First $500,000 x 5%	$22,500	$25,000	N/A
More than $500,000 and less than $1,000,000 x 10%	N/A	$35,000	N/A
More than $1,000,000 x 20%	N/A	N/A	$300,000
Total down payment	$22,500	$60,000	$300,000

Your down payment affects the type of mortgage you get

Your down payment amount determines if you have a conventional mortgage or a high-ratio mortgage. If you have a high-ratio mortgage, you may be required to purchase mortgage default insurance.

If your down payment is 20% or more of the property value, you'll get a conventional mortgage.

If your down payment is less than 20%, you'll get a high-ratio mortgageOpens a popup., which requires mortgage default insuranceOpens a popup.. You buy the insurance from providers like Canada Mortgage and Housing Corporation (CMHC)Opens a new window in your browser..

The insurance premium depends on the amount you're borrowing and the percentage of your down payment. Premiums range from 0.6% to 4.5% of the mortgage amount. You can pay for the insurance when you buy it or just add it to your mortgage total¹.

Start saving for your down payment

These strategies can help you meet your goal:

Start saving by opening a CIBC RRSP Daily Interest Savings Account (DISA)
Set a monthly savings goal and track your success
Put aside money each month as if you're paying a mortgage already
Save your work bonuses, pay raises and tax refunds
Pay with cash instead of credit cards; you'll spend less overall
Reduce your spending on eating out and buying the latest gadgets and toys
Find cheaper ways of doing things, such as taking staycations, using coupons and borrowing books from the library
Sell one of your cars and put the savings towards your down payment
Pay off your credit card debt; stop paying interest and start funding your dream

Get up to $60,000 from your RRSP when buying your first home

First-time home buyers may be eligible for the government's Home Buyers' Plan (HBP)Opens in a popup.. You and your spouse or common-law partner may be eligible to withdraw up to $60,000 each from your Registered Retirement Savings Plan (RRSP), which could help with your home purchase costs.

You won’t pay any tax on the amounts you withdraw if you repay the total amount to your RRSP as required within the next 15 years. The repayment period starts the second year after you make your withdrawals.

You can also research various provincial and municipal incentive programs. They could help reduce land transfer taxes for first-time home buyers.

Learn more about the Home Buyers’ Plan (HBP) Opens in a new window..

Save up to $40,000 tax-free with the First Home Savings Account

The First Home Savings Account (FHSA) is a registered plan that’s designed to help you save for your first home, tax-free. Your qualifying contributions will be tax-deductible, like a registered retirement savings plan (RRSP). Your qualifying withdrawals will be non-taxable, like a tax-free savings account (TFSA).

You can contribute up to $8,000 annually, including any transfers from an RRSP. The lifetime contribution limit is $40,000. If you qualify to use your savings towards the purchase of a qualifying home, you can withdraw money from your FHSA, tax-free.

You can use savings from your RRSP Home Buyers’ Plan (the HBP) and your FHSA towards the purchase of the same qualifying home purchase.

Learn more about the First Home Savings Account (FHSA) Opens in a new window..

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Start saving for your mortgage down payment

Minimum down payment requirements:

Down payment amounts

Your down payment affects the type of mortgage you get

Start saving for your down payment

Get up to $60,000 from your RRSP when buying your first home

Save up to $40,000 tax-free with the First Home Savings Account

Learn more about mortgages

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