How much down payment do I need in Canada?

You need 5% for homes under $500,000, 5% plus 10% on the portion up to $1.5 million, and 20% for homes above $1.5 million.

Can I buy a home with bad credit in Canada?

Yes. Many lenders offer alternative or private mortgage options for borrowers with lower credit scores, though interest rates may be higher.

What credit score do I need to get approved?

Most lenders prefer a credit score of 680 or higher for the best rates, but approvals are still possible with lower scores.

How much mortgage can I afford?

It depends on your income, debts, and interest rates. Most lenders allow up to 39% of income for housing costs and 44% for total debt.

What is the mortgage stress test in Canada?

You must qualify at the higher of 5.25% or your mortgage rate plus 2%, even if your actual rate is lower.

Should I choose a fixed or variable mortgage?

Fixed mortgages offer stable payments, while variable rates can change with the market and may start lower.

What is mortgage pre-approval and do I need it?

A pre-approval confirms your budget, locks in a rate for up to 120 days, and strengthens your offer when buying a home.

How long does mortgage approval take?

Pre-approvals can take 24–72 hours, while full approvals typically take 1 to 2 weeks depending on your documents.

Can I get a mortgage if I’m self-employed?

Yes. You may need two years of income history or use alternative lenders that accept bank statements or stated income.

What is mortgage insurance (CMHC) and when is it required?

Mortgage insurance is required when your down payment is under 20% and is added to your mortgage cost.

Can I switch lenders at renewal without requalifying?

Yes, in many cases, especially with insured mortgages, you can switch lenders at renewal to get a better rate.

What happens when my mortgage renews?

At renewal, you can accept your lender’s offer, negotiate better terms, or switch lenders.

What are closing costs in Canada?

Closing costs typically range from 1.5% to 4% of the purchase price and include legal fees, taxes, and inspections.

What programs help first-time home buyers in Canada?

Programs include the FHSA, RRSP Home Buyers’ Plan, and various government incentives and rebates.

Can I refinance my mortgage?

Yes. Most lenders allow refinancing up to 80% of your home’s value to access equity or consolidate debt.

How do mortgage rates work in Canada?

Rates are influenced by the Bank of Canada, inflation, market conditions, and your credit and financial profile.

What documents do I need for a mortgage?

You typically need ID, proof of income, employment details, down payment proof, and credit history.

Can I get a mortgage after bankruptcy or consumer proposal?

Yes. You may need re-established credit, a larger down payment, and may need to use alternative lenders.

Is 20% down required in Canada?

No. You only need 20% down for homes over $1.5 million or to avoid mortgage insurance.

Can I get a 30-year mortgage in Canada?

Yes. Many lenders offer 30-year amortizations, especially for first-time buyers, to lower monthly payments.

ALL Blog Posts

Minimum Down Payment in BC (2026): How Much Do You Need?

Vrndavan Christa
Apr 24
2 min read

If you're planning to buy a home in British Columbia, one of the first questions you’ll ask is: How much do I need for a down payment?

The good news is—you may not need as much as you think.

👉 Not sure if you qualify? Speak with a mortgage expert today.

What Is a Down Payment?

A down payment is the amount you pay upfront when buying a home. The rest is covered by your mortgage.

Minimum Down Payment Rules in BC (2026)

Here’s how it works in Canada:

For homes under $500,000

👉 Minimum 5% down payment

For homes between $500,000 – $999,999

👉 5% on the first $500,000👉 10% on the remaining amount

For homes $1,000,000 and above

👉 Minimum 20% down payment

Example

If you’re buying a $700,000 home:

5% of $500,000 = $25,000
10% of $200,000 = $20,000

👉 Total down payment = $45,000

Can You Buy with Less Than 20%?

Yes.

If your down payment is less than 20%, your mortgage will require insurance (CMHC or similar).

This allows many buyers to enter the market sooner.

Where Can Your Down Payment Come From?

Accepted sources include:

Personal savings
RRSP (First-Time Home Buyer Plan)
Gift from family
Investments

Can You Buy with No Down Payment?

In most cases, a minimum of 5% is required.

However, there may be creative solutions depending on your situation.

👉 We can help explore your options.

Tips to Save Your Down Payment Faster

Set a monthly savings goal
Reduce unnecessary expenses
Use RRSP contributions
Get support from family if possible

Want to know how much you can get approved for? Get a free consultation.

How Down Payment Affects Your Approval

Your down payment impacts:

Approval chances
Interest rates
Monthly payments

👉 A higher down payment = lower risk for lenders

🚀 Ready to See What You Can Afford?

👉 We help clients across BC get approved—even with low down payments, bad credit, or self-employment.

✔ Personalized mortgage solutions✔ Access to multiple lenders✔ Fast approvals

👉 Book your FREE consultation today and find out your options.