The down payment is the biggest upfront hurdle to buying a home so let’s clear up exactly how much you need in BC in 2026, when you have to pay CMHC insurance, and what it all costs. No jargon, just the numbers.
Quick answer: The minimum down payment in BC is tiered: 5% on the first $500,000, 10% on the portion between $500,000 and $1.5 million, and 20% on homes priced $1.5M and over (those can’t get insured mortgages). If you put down less than 20%, you must pay CMHC mortgage default insurance, which is added to your mortgage. On an $800,000 home, the minimum down payment is $55,000.
Minimum Down Payment in BC (Quick Answer + Chart)
Here’s the whole rulebook in one table:
| Home price | Minimum down payment |
| Under $500,000 | 5% of the price |
| $500,000 – $1,499,999 | 5% on first $500K + 10% on the rest |
| $1,500,000 and over | 20% of the price |
Put down less than 20%? You’ll need CMHC (or Sagen/Canada Guaranty) insurance. Put down 20%+ and you skip the insurance entirely.
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- realtor north vancouver
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Down Payment Rules by Price
Under $500K (5%)
Simple: 5% of the purchase price. A $450,000 condo needs $22,500 down.
$500K–$1.5M (5% + 10%)
This tier trips people up. You pay 5% on the first $500,000 and 10% on everything above it.
Example $800,000 home:
- 5% × $500,000 = $25,000
- 10% × $300,000 = $30,000
- Minimum down payment = $55,000 (about 6.9% of the price)
$1.5M and Over (20%)
Homes at $1.5 million or more can’t be insured, so you need at least 20% down. On a $1.5M home that’s $300,000.
What Is CMHC Mortgage Insurance and When You Need It
CMHC mortgage default insurance protects the lender (not you) if you can’t pay. It’s mandatory whenever your down payment is under 20% which is how lenders can safely offer high-ratio mortgages. It’s not optional, and it’s rolled into your mortgage balance so you pay it off over time (plus interest). In BC you also pay PST on the premium upfront at closing.
The big rules to remember:
- Required only for down payments below 20%.
- Only available on homes under $1.5 million.
- Max amortization is 25 years but 30 years is allowed for first-time buyers or new-build
How Much Does CMHC Insurance Cost? (Premium Table)
Your premium is a percentage of the mortgage amount, and it goes down the more you put down:
| Down payment | CMHC premium (% of mortgage) |
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20%+ | None |
Example $800,000 home, $55,000 down (6.9%):
- Mortgage amount = $745,000
- Premium at 4.00% = $29,800, added to the mortgage
- Plus 7% BC PST on the premium ($2,086) paid upfront at closing
The takeaway: a bigger down payment doesn’t just shrink your mortgage it can drop your premium rate too.
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Down Payment Examples for Vancouver Prices
| Home price | Minimum down | Effective % |
| $450,000 (condo) | $22,500 | 5% |
| $800,000 (townhouse) | $55,000 | 6.9% |
| $1,200,000 (house) | $95,000 | 7.9% |
| $1,500,000 (house) | $300,000 | 20% |
Where to Get Your Down Payment (FHSA, RRSP, Gift)
You don’t have to save it all from your paycheque. Common sources:
- FHSA (First Home Savings Account): contribute up to $8,000/year ($40,000 lifetime), tax-deductible going in and tax-free coming out for a home arguably the best tool for first-time buyers.
- RRSP Home Buyers’ Plan (HBP): withdraw up to $60,000 per person ($120,000 per couple) tax-free, repaid over 15 years.
- Gifted down payment: a gift from an immediate family member is allowed with a signed gift letter.
- Regular savings/TFSA: flexible and always eligible.
Combine an FHSA and RRSP HBP as a couple and you can assemble a substantial down payment tax-efficiently.
FAQ
What is the minimum down payment for a house in BC?
5% on the first $500,000, 10% on the portion from $500K–$1.5M, and 20% on homes $1.5M and up.
How much down payment do I need for an $800,000 home?
$55,000 minimum 5% of the first $500K ($25,000) plus 10% of the next $300K ($30,000).
Do I have to pay CMHC insurance?
Only if your down payment is under 20%. At 20% or more, no insurance is required.
How much does CMHC insurance cost?
Between 2.8% and 4.0% of your mortgage, depending on your down payment size, added to your mortgage. In BC you also pay PST on the premium upfront.
Can I avoid CMHC insurance?
Yes, put down 20% or more. On homes $1.5M+ that’s mandatory anyway.
Can I use my RRSP or FHSA for a down payment?
Yes. The FHSA lets you save up to $40,000 tax-free for a home, and the RRSP Home Buyers’ Plan lets you withdraw up to $60,000 per person.
Is the down payment on top of closing costs?
Yes. Budget an extra ~1.5–4% of the price for closing costs (legal, inspection, property transfer tax, etc.) on top of your down payment.
Can my down payment be a gift?
Yes, from an immediate family member, with a signed gift letter confirming it doesn’t need to be repaid.
What’s the max amortization with less than 20% down?
25 years normally, but 30 years if you’re a first-time buyer or buying a newly built home.
