How much down payment do you really need? 5%, 10%, and 20% compared

The actual minimum, tier by tier

For homes up to $500,000, the minimum is 5% down. Between $500,000 and $1.5 million, it's 5% on the first $500,000 and 10% on the portion above that. Above $1.5 million, you need 20% down minimum, and default insurance isn't available at all above that price point.

What changes if you put down less than 20%

Anything below 20% requires mortgage default insurance (commonly through CMHC), which protects the lender if you default, not you. It's added to your mortgage as a premium, typically financed into your payments rather than paid upfront. It's an added cost, but it's also what makes homeownership possible for a lot of buyers who'd otherwise need years more saving.

What changes at exactly 20%

At 20% down or more, you're in what's called "conventional" territory and default insurance isn't required at all. That saves you the premium entirely. It also opens up slightly more flexibility with amortization length and some lender products that aren't available on insured mortgages.

So what's actually right for you

More down payment lowers your monthly payment and cuts interest over the life of the mortgage. But waiting years to hit 20% while home prices climb can cost more than the insurance premium would have. There's no universally correct answer here, it depends on your timeline, the market, and what else that saved cash could be doing for you. Worth running the actual numbers before deciding.