22 January 2026

Buying a property is often seen as the greatest financial achievement in life. Yet for the vast majority of future Canadian buyers, one barrier feels insurmountable: accumulating the capital needed for the first down payment. With the rising cost of living and the constantly evolving real estate market, it’s perfectly legitimate to ask yourself how to save for a house down payment without sacrificing your current quality of life.

The reality is that money doesn’t fall from the sky, but with a disciplined strategy, the right financial tools, and a clear understanding of mortgage rules, this dream is more accessible than you think. As a real estate expert, I’m not here to sell you dreams, but to help you build a solid action plan.

In this in-depth guide, we’ll break down the mechanisms of home savings, analyze the new rules introduced at the end of 2024 regarding price caps, and most importantly, we’ll do the math for you. If you need inspiration before diving into the numbers, I invite you to read what my clients say about their buying experience.

What is the minimum down payment to buy a house?

The first step in your home buying journey is knowing your target. Many buyers aim for the mythical 20%, thinking it’s mandatory. That’s a mistake that could cost you years of unnecessary waiting.

In Canada, the rules regarding mortgage loans and minimum down payments are based on the purchase price of the property. It’s essential to understand the recent changes that make homeownership easier for first-time buyers.

Down payment tiers in 2026

Here is the exact mathematical rule to determine how much you need to contribute:

• From $0 to $500,000: You must contribute 5% of the price.
• From $500,000 to $1,500,000: You must contribute 5% on the first $500,000, and 10% on the remaining portion.
• Property of $1,500,000 and above: A down payment of 20% is required (as the property is no longer eligible for mortgage loan insurance).

Important note: Previously, the cap for a down payment under 20% was set at $1 million. The increase to $1.5 million offers greater flexibility for buyers in expensive markets like Greater Montreal or Vancouver.