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How Much Should You Put Down on Your Mortgage

When you’re buying a home in Canada, one of the biggest decisions you’ll have to make is how much money to put down. It’s a balancing act – the more money you put down, the lower your monthly mortgage payments will be, but you’ll also have less money available for other things like, furnishings, and emergencies. So how do you decide how much to put down? Keep reading to find out.

The Size of Your Down Payment Matters

The rule of thumb is that you should aim for a down payment that’s at least 20% of the purchase price of the home. Why? Because if you can manage to put down that much, you’ll avoid having to pay Canada Mortgage and Housing Corporation (CMHC), which is an insurance that protects the lender in case you default on your loan. CMHC insurance can add a significant amount to your monthly mortgage payments, so it’s worth trying to avoid if possible. Read one of our previous published blogs to find out about CMHC 

Of course, coming up with a 20% down payment isn’t always easy – especially if you’re a first-time homebuyer or you don’t have a lot of equity in your current home. In that case, it’s still possible to buy a home by putting down less than 20%. Just be aware of the extra cost that comes with that.

Use our affordability calculator to get an idea of the amount you may pay each month

Your Mortgage Broker will Guide You

In addition to the size of your down payment, another important factor to consider is your overall financial situation. Take a close look at your budget and ask yourself how much house you can really afford – both now and five or ten years down the road when your circumstances may have changed. For example, do you plan on having children in the near future? If so, will your budget be able to accommodate for the extra cost? It’s also important to remember that as time goes on, unexpected expenses are bound to pop up – whether it’s a major home repair or simply an increase in property taxes. Make sure you have some wiggle room in your budget so that you can handle these kinds of costs without getting into financial trouble.


When deciding how much money to put down on a home – it ultimately depends on your individual circumstances.  Remember to also consider your overall financial situation when making this decision, and don’t forget to factor in potential future expenses like repairs and renovations. Whether it is as little as 5%  or 20% to avoid having to pay the CMHC extra amount as mentioned above, home ownership needs to start with getting pre-approved to understand all your options. Our goal is to make your experience simple and easy.

We advise contacting one of our knowledgeable Mortgage Tree brokers, who have the inside knowledge and expertise to guide you properly. 

Thank you for taking the time to visit our website and read our blog.

We hope we have been able to answer a few questions.

Please contact us anytime we are here to help you!


The Mortgage Tree Team – “Your Key to Home Ownership”