Down Payment Calculator & Savings Planner — Canada 2026
Project your savings across FHSA, RRSP, TFSA, and GIC accounts over time — with full Ontario closing cost breakdown so you know your real savings target.
The down payment isn't the total cash you need. In Ontario, closing costs add $15,000–$30,000+ on top — and must be paid in cash on closing day.
Saving for a down payment is the slowest, hardest part of buying a home — and the part where most first-time buyers underestimate what they need. The "5% down" headline you've seen in the media is a Canadian rule that only applies to homes priced under $500,000. Above that, the math gets tiered, and the gap between what people think they need and what they actually need at GTA-level prices is often $30,000 to $80,000.
This planner does three things a regular savings calculator doesn't: it calculates the legal minimum down payment for your target price using Canada's tiered rule, it stacks Ontario closing costs (land transfer tax including the Toronto MLTT, legal fees, title insurance, plus HST on new builds) on top of the down payment so you see the real cash you'll need at closing, and it projects savings growth across FHSA, RRSP HBP, TFSA, and GIC accounts simultaneously so you can pick the right mix for your timeline. Most planners stop at "save 20% of the price" — that misses about half the actual problem.
The Tiered Minimum Down Payment Rule (Where Most Buyers Get Surprised)
Canada's minimum down payment is calculated in tiers, not as a single percentage. For most homes, the actual minimum is a weighted blend of 5% and 10% — and the percentage moves up the higher the price.
| Purchase Price | Minimum Down Payment | Effective % | Insured? |
|---|---|---|---|
| $400,000 | $20,000 | 5.00% | Yes (CMHC) |
| $500,000 | $25,000 | 5.00% | Yes (CMHC) |
| $650,000 | $40,000 | 6.15% | Yes (CMHC) |
| $800,000 | $55,000 | 6.88% | Yes (CMHC) |
| $1,000,000 | $75,000 | 7.50% | Yes (CMHC) |
| $1,200,000 | $95,000 | 7.92% | Yes (CMHC) |
| $1,499,999 | $124,999 | 8.33% | Yes (CMHC) |
| $1,500,000+ | 20% required | 20.00% | No (conventional only) |
The 5%/10% tiered rule applies to homes priced from $500,000 up to (but not including) $1.5 million. At or above $1.5M, no insured mortgage is available — you must put 20% or more down.
The boundary between $500K and $1.5M is where buyers most often miscalculate. If you're shopping in the GTA at typical detached or semi-detached prices, you're almost certainly in the tiered zone, not the flat 5% zone. A buyer who's been "saving 5%" for a $750,000 home is going to discover at offer time that they need $50,000, not $37,500 — a gap that takes most savers another 6–12 months to close.
This is the legal minimum. Many buyers choose to put down more than the minimum to lower the CMHC premium tier, qualify for a smaller mortgage, or strengthen their offer. See the CMHC calculator for a side-by-side comparison of CMHC premiums at different down payment levels.
The Real Cost — Down Payment + Closing Costs
The down payment is the headline number, but it's not the only cash you need at closing. In Ontario, plan for these additional costs:
| Cost | Typical Amount on $850K GTA Home | Notes |
|---|---|---|
| Ontario land transfer tax | $13,475 | Tiered; first-time buyer rebate up to $4,000 |
| Toronto MLTT (if in Toronto) | ~$13,475 | Doubles the LTT cost; same rebate up to $4,475 |
| Legal fees + disbursements | $1,800–$2,500 | Lawyer's fee plus title search, registration, etc. |
| Title insurance | $300–$500 | Often bundled into legal fees |
| Home inspection | $400–$700 | Pre-offer; only if you accept the report |
| Property tax adjustment | ~$1,500 | Reimburses seller for prepaid property tax |
| Mortgage default insurance RST | ~$1,650 | Ontario 8% RST on CMHC premium — paid at closing in cash, cannot be added to mortgage |
For an $850,000 home in Toronto proper, total closing costs come to roughly $32,000 on top of the down payment. For the same home in Mississauga, Markham, Vaughan, or any GTA municipality outside Toronto, the absence of the Toronto MLTT brings closing costs down to around $19,000. The municipal LTT is a $13,000 line-item difference that buyers crossing back and forth between Toronto and the 905 frequently underestimate. See our closing costs Ontario 2026 guide for the full breakdown.
Where to Save Your Down Payment
Canadian first-time buyers have access to three tax-advantaged accounts, plus standard high-interest savings accounts and GICs for shorter timelines. The right mix depends on your income, your timeline, and how much you want to deploy at once.
FHSA — First Home Savings Account
The strongest single tool available for first-time buyers, full stop. Contribute up to $8,000 per year (with up to $8,000 of unused room carrying forward) to a $40,000 lifetime contribution maximum. Contributions are fully tax-deductible, growth inside the account is tax-sheltered, and qualifying withdrawals to buy a first home are completely tax-free with no repayment required. The FHSA combines the upfront tax break of an RRSP with the tax-free withdrawal of a TFSA — the best of both worlds, but only for first-home savings.
You must be a Canadian resident, age 18 or older (19 in some provinces), and qualify as a first-time homebuyer (you or your spouse haven't owned a home you lived in during the calendar year of opening or the four prior years). Once you open an FHSA, your contribution clock starts — so opening the account is worth doing even if you can't fund it immediately. The account must be used to buy a home within 15 years or by age 71, whichever comes first.
RRSP Home Buyers' Plan (HBP)
The HBP lets you withdraw up to $60,000 per person ($120,000 for a qualifying couple) from your RRSP tax-free for a first home purchase. The limit was increased from $35,000 effective for HBP withdrawals after April 16, 2024. The catch: you must repay the withdrawal over 15 years starting in the second calendar year after withdrawal, or the missed annual repayment becomes taxable income that year. Funds also need to be in the RRSP at least 90 days before withdrawal to qualify.
For first-time buyers, the FHSA is structurally better than the HBP — same tax-deductible contribution, tax-free growth, but no required repayment. Use the HBP as a top-up if your FHSA isn't enough or if you've maxed your FHSA contribution room and still need more.
TFSA
No tax deduction on contributions, but every dollar of growth and every withdrawal is tax-free with no restrictions. The TFSA shines for savers who've already maxed FHSA and HBP, who don't need the upfront tax deduction (e.g., students or low-income earners), or who want flexibility to withdraw without home-purchase restrictions.
High-interest savings + GICs
For timelines under 2 years, market exposure is too risky for down payment money. A high-interest savings account or short-term GIC inside your FHSA, RRSP, or TFSA preserves capital while still earning 3–4% in current rate environments. Don't keep down payment money in equities if you're buying within 24 months — a 20% market drawdown right before closing is the kind of mistake that delays a home purchase by years.
FHSA vs RRSP HBP vs TFSA — Comparison
| FHSA | RRSP HBP | TFSA | |
|---|---|---|---|
| Annual contribution limit | $8,000 | RRSP limit | $7,000 (2026) |
| Lifetime contribution limit | $40,000 | RRSP limit | Cumulative |
| Tax deduction on contribution | Yes | Yes | No |
| Tax-free growth | Yes | Yes (until withdrawal) | Yes |
| Tax-free withdrawal for first home | Yes | Yes | Yes (always) |
| Repayment required? | No | $60K over 15 years | No |
| First-time buyer required? | Yes | Yes (HBP only) | No |
| Best use case | Primary first-home savings | Top-up beyond FHSA | Above-FHSA savings, flexibility |
For a deep dive on the FHSA-vs-HBP decision specifically, see our FHSA vs RRSP Home Buyers' Plan Canada 2026 guide.
Common Mistakes to Avoid
The 5% rule only applies below $500,000. At GTA prices, the actual minimum is a tiered blend that effectively works out to 6–8.3% of the price. A buyer targeting a $750,000 home who saved 5% ($37,500) is $12,500 short of the legal minimum ($50,000). Always run the actual tiered calculation against your specific target price.
The down payment is what you need to qualify for the mortgage. Closing costs are what you need on closing day in addition to that. For an $850K Toronto home, closing costs run roughly $32,000. Buyers who arrive at closing with exactly the down payment in cash discover they need to scramble for tens of thousands more — often borrowing it from family or via a personal line of credit at the worst possible moment.
Equity exposure for short-timeline savings is the wrong trade-off. A 25% drawdown in a recession year (2008, 2020, 2022) right before your offer would push your purchase back by 12–24 months. Keep down payment funds you'll need within 24 months in HISA or short GICs inside tax-sheltered accounts. After your timeline extends past 5+ years, modest equity exposure (a balanced ETF) becomes more reasonable.
FHSA contribution room only starts accumulating once the account is open. If you're 23 and might buy a home at 28, opening an empty FHSA today means you'll have $40,000 of room available when you start contributing — and the 15-year clock to use it before age 71. Many people delay opening the account until they have money to put in it, which costs them years of contribution room.
You can use both FHSA and HBP for the same purchase, stacking up to $100,000 per person. But the HBP's 15-year repayment requirement makes it less efficient than the FHSA. Strategy: max FHSA first ($40,000 lifetime), then top up with HBP ($60,000) only if your FHSA isn't enough. Don't reverse the order — the HBP repayment locks up your post-purchase cash flow when you'll need it most.
If you borrow your down payment (from an unsecured line of credit, gifted from a non-immediate-family friend, or raised via "down payment assistance" programs that aren't from immediate family), the CMHC premium goes up 0.20% — bringing the top-tier 95% LTV premium from 4.00% to 4.20%. On an $800,000 home with 5% down, that's an extra ~$1,600 added to the loan. Document immediate-family gifts properly with a signed gift letter to avoid this triggering accidentally.
What This Calculator Doesn't Tell You
This planner stops short of a few decisions you should make with a real professional:
- Whether your specific lender will accept your down payment source. Most lenders verify 90 days of bank-statement source-of-funds. Cryptocurrency, recent large unexplained deposits, or non-immediate-family gifts can require additional documentation or be rejected outright.
- Your specific RRSP HBP repayment cash flow impact. Repaying $60,000 over 15 years means $4,000/year of after-tax cash flow you can't deploy elsewhere. Worth modelling against your post-purchase budget.
- Whether you'll qualify for a mortgage at all. Saving the down payment is necessary but not sufficient — the OSFI stress test, GDS/TDS ratios, and lender-specific underwriting are separate conversations. Use the affordability calculator for that.
- The right asset mix for your specific timeline. A 23-year-old saving for a 30-year-old home purchase has different risk tolerance than a 35-year-old buying in 18 months. The "right" asset mix is a financial planning conversation, not a calculator output.
How Much Income Do You Need to Buy a House in Canada?
Saving the down payment is half the battle — you also need enough income to qualify for the mortgage. The mortgage stress test Canada 2026 means lenders qualify you at approximately 6.29%, not your actual rate. A household earning $120,000 with minimal debt qualifies for roughly $580,000–$620,000. Full breakdown in our income needed to buy a house in Canada guide.
Set your target home price and see exactly how much you need — down payment, closing costs, and CMHC premiums combined.
Open Full Calculator →Frequently Asked Questions
Is the 5% minimum down payment really the minimum, or do I need more?
The 5% minimum only applies to homes priced under $500,000. From $500,000 up to (but not including) $1.5 million, the minimum is 5% on the first $500K plus 10% on the portion above — which means an effective minimum of 6–8.3% depending on the price. At $1.5 million or above, the minimum is 20% with no insured mortgage available. Always calculate against your specific target price.
Can I use both my FHSA and RRSP HBP for the same home purchase?
Yes. The two accounts stack — you can withdraw from your FHSA tax-free with no repayment, and also withdraw up to $60,000 from your RRSP under the Home Buyers' Plan with 15-year repayment, on the same purchase. Maximum combined: roughly $100,000 per person. The recommended order is to max the FHSA first ($40K lifetime, no repayment) and use the HBP as a top-up, since the HBP's repayment obligation reduces post-purchase cash flow.
How long do funds need to be in my RRSP before I can withdraw under the HBP?
RRSP contributions generally need to be in the account for at least 90 days before they can be withdrawn under the Home Buyers' Plan. This rule is meant to prevent last-minute "RRSP loans" that capture the deduction without genuine retirement intent. If you're planning to use the HBP, contribute well in advance of when you'll need the funds. The FHSA has no equivalent 90-day rule.
What counts as a "first-time" homebuyer for the FHSA and HBP?
You're a first-time homebuyer if neither you nor your spouse/common-law partner owned a qualifying home that you used as your principal residence in the four calendar years before the year of withdrawal (and not in the current year up to 31 days before). This means someone who owned a home 5+ years ago can typically qualify as first-time again. The exact rules differ slightly between the FHSA and HBP, and CRA's documentation is the authoritative source.
Can I use a gifted down payment, and how do lenders verify it?
Yes, lenders accept gifted down payments from immediate family (parents, siblings, grandparents) without the "non-traditional" CMHC surcharge. You'll typically need a signed gift letter stating the funds are a true gift with no repayment expected, plus 90 days of source-of-funds documentation showing the money was actually deposited (not just promised). Gifts from non-immediate family or friends are treated as non-traditional and trigger the 0.20% CMHC premium surcharge.
Should I put down 20% to avoid CMHC, or 5–10% and buy sooner?
It depends on your timeline and the market. In a rising market, waiting 2–3 years to save another 10–15% can cost you more in price appreciation than the CMHC premium. In a flat or falling market, the calculus reverses. If you have the 20% available now, putting it all down is almost always financially better than holding it back. The trickier decision is whether to put 5% down now versus waiting another 2 years to put 20% — that's a function of your local price-trend assumption.
What if my down payment is less than the legal minimum on my target price?
You have three options: lower your target price to where your savings are sufficient, save longer to hit the minimum on your current target, or supplement your down payment with a gift from immediate family. Borrowing the difference (from a personal line of credit or family loan) is technically possible but triggers the non-traditional CMHC surcharge and signals to lenders that you may be over-extended — many will decline the application.
Does Ontario's first-time buyer LTT rebate fully cover the land transfer tax?
The Ontario rebate is up to $4,000 — which fully covers the LTT on a home up to about $368,000. Above that, the rebate offsets the first $4,000 and you pay the remainder. In Toronto, the City of Toronto MLTT has its own separate rebate of up to $4,475, applied independently. So a first-time buyer in Toronto on an $850K home can claim up to $8,475 in combined rebates against roughly $26,950 in combined LTT — meaning you still pay around $18,475 net at closing.
This calculator is for educational purposes only and does not constitute financial, mortgage, or legal advice. Savings projections are estimates based on assumed rates of return and contribution levels. Actual results depend on market conditions, account type, and individual circumstances. FHSA and RRSP HBP rules are governed by the Canada Revenue Agency and may change. Always consult a licensed financial advisor or mortgage professional. ClearKey is not a licensed mortgage brokerage.