Canada home-buying cash plan
Down Payment and Cash-to-Close Calculator Canada
Test whether your savings cover more than the legal down payment. This calculator separates the money used for the down payment, estimated closing costs, provincial tax on mortgage insurance, and the cash reserve you want to protect after closing.
See the down payment rules, premium bands and cash model
Calculation sequence
Minimum down payment is calculated from the federal purchase-price thresholds. In total-savings mode, protected reserve and closing-cost allowance are removed first. The remaining cash is split between down payment and any provincial tax on the mortgage-insurance premium.
Mortgage payment formula
Monthly principal and interest use a Canadian nominal annual rate converted from semi-annual compounding: monthly rate = (1 + annual rate / 2)1/6 – 1. Values are rounded to the nearest dollar for display.
Model constants
- Internal model: NH-DP-CA-2026.07.13
- Insured purchase-price cap: below CAD 1,500,000
- Standard CMHC premium bands: 4.00%, 3.10%, 2.80%
- Home Start 30-year bands: 4.20%, 3.30%, 3.00%
Included and excluded
Included: owner-occupied 1- to 2-unit purchase planning, minimum down payment, standard CMHC premium, provincial premium tax, editable closing allowance and monthly mortgage comparison.
Not included: lender approval, stress test, land transfer tax calculation, rebates, non-traditional down-payment premium, mortgage portability credits, property appraisal, legal quote, GST/HST on a new build or lender-specific fees.
Official sources reviewed
Your purchase budget
Build your Canadian cash-to-close plan
Use total-savings mode to protect a reserve automatically, or enter a down payment directly when your closing cash is already planned separately.
Add monthly ownership costs to the comparison
The four cash milestones that reshape an insured mortgage
These are structural breakpoints, not promises that a lender will approve the mortgage.
Federal minimum entry
5% up to CAD 500,000; 5% on the first CAD 500,000 plus 10% above that amount; 20% at CAD 1.5 million or more.
10% down payment
For a standard 25-year insured mortgage, the published CMHC premium rate moves from 4.00% to 3.10%.
15% down payment
The standard premium rate moves again, from 3.10% to 2.80%. Home Start 30-year premium rates are higher in each insured band.
20% down payment
The purchase becomes a conventional uninsured structure, so the CMHC premium and its provincial tax no longer apply.
See where the purchase cash goes and what each milestone changes
The charts appear after Calculate and explain only the current valid result.
Purchase cash allocation
Monthly principal and interest by milestone
The payment range appears after calculation.
How your cash position changes at the next mortgage breakpoint
The same home is compared at the legal minimum, your current structure, the next premium tier and 20% down.
| Structure | Down payment | Insurance premium | Total purchase cash | Monthly P&I |
|---|
Where every dollar of the purchase budget goes
The rows reconcile the result card, premium calculation and cash-to-close estimate.
| Component | Amount | What it changes |
|---|
Why a valid down payment can still leave the deal underfunded
The legal minimum answers only one question: whether the down payment itself reaches the federal threshold.
A Canadian buyer can have the minimum down payment and still be short on closing day. Legal fees, land registration or transfer charges, title insurance, adjustments, inspection, appraisal and property-insurance setup are separate from the down payment. FCAC and CMHC describe closing costs as a broad planning range of roughly 1.5% to 4% of the purchase price, but the exact amount depends heavily on the province, municipality, property type and transaction.
This calculator therefore treats the closing-cost percentage as an editable allowance rather than pretending that one provincial average is exact. In total-savings mode, it also protects the cash reserve you enter before calculating how much can safely become the down payment. Replace the allowance with a transaction-level estimate in the Closing Costs Calculator Canada, and calculate the tax component separately with the Land Transfer Tax Calculator Canada.
| Worked example input or output | Amount | Reason |
|---|---|---|
| Home price | CAD 550,000 | Minimum down payment is CAD 30,000 under the federal tiered rule. |
| Savings minus protected reserve | CAD 50,000 | CAD 55,000 saved minus CAD 5,000 kept after closing. |
| Closing allowance | CAD 11,000 | Editable 2% planning assumption. |
| Effective down payment | CAD 37,771 | The remaining purchase cash after closing allowance and Saskatchewan premium tax. |
| Mortgage-insurance premium | CAD 20,489 | 4.00% of the base mortgage at a 6.87% down payment and 25-year amortization. |
| Next 10% tier gap | CAD 16,921 | Additional purchase cash needed to reach 10% after the lower premium tax is recalculated. |
When more cash changes the mortgage – and when it only changes the balance
The best target is not automatically the largest possible down payment.
Reaching 10% or 15% can reduce two costs at once
More cash lowers the base mortgage and can also move the insured loan into a lower published premium band. The result card measures both effects.
Reaching 20% removes mortgage insurance
This is the clearest structural breakpoint. The insurance premium and the Ontario, Quebec or Saskatchewan tax on that premium disappear.
Draining the reserve can make a stronger down payment weaker
A larger down payment may look efficient while leaving no room for repairs, moving costs or a temporary income interruption. That is why total-savings mode protects a reserve first. Before reducing that reserve, model taxes, insurance, utilities and maintenance in the Total Cost of Homeownership Calculator Canada.
A lender can still require more than the federal minimum
Credit history, property type, self-employment, debt-service ratios and lender policy can change the required down payment or prevent approval altogether. Test household capacity with the Mortgage Affordability Calculator Canada, then check qualifying-rate pressure in the Mortgage Stress Test Calculator Canada.
Costs to confirm before treating the estimate as closing-ready
The calculator is a planning model, not a lawyer’s statement of adjustments or a lender commitment.
- Land transfer or registration charges: these vary by province and municipality and may include rebates or additional city tax.
- Legal and transaction costs: lawyer or notary fees, title insurance, registration, adjustments and lender-specific charges require a transaction-level estimate.
- New-build tax: GST/HST, rebates and builder adjustments can materially change the cash requirement.
- Property-specific charges: appraisal, inspection, well or septic testing, condo document review, title insurance and utility adjustments are transaction-specific.
- Mortgage-insurance details: the model uses CMHC’s published owner-occupied premium bands and assumes a traditional down-payment source. Other insurers or special products may differ.
- Approval: income, debts, credit, qualifying rate and lender policy are outside this page and require a separate affordability and qualification check.
Questions Canadian buyers should settle before choosing a down payment
These answers address the exact rules and limitations used by this calculator.
What is the minimum down payment on a CAD 600,000 home?
It is CAD 35,000: 5% of the first CAD 500,000 plus 10% of the remaining CAD 100,000. Closing costs and any provincial tax on the mortgage-insurance premium are separate.
Does a 30-year insured mortgage use the same CMHC premium rate?
No. CMHC Home Start publishes higher premium bands for eligible 30-year insured mortgages: 4.20%, 3.30% and 3.00% across the main high-ratio bands. Eligibility requires a first-time buyer and/or a newly built home.
Why is Ontario, Quebec or Saskatchewan cash-to-close higher?
CMHC identifies those provinces as applying provincial sales tax to mortgage-insurance premiums. The tax cannot be added to the mortgage, so it must be paid in cash. This model uses 8% for Ontario, 9% for Quebec and 6% for Saskatchewan.
Does the closing-cost percentage include every legal and tax charge?
No. It is a user-editable allowance. Exact land transfer tax, legal fees, adjustments, new-build tax, appraisal and other charges must be confirmed for the property and location.
Can this calculator tell me whether I qualify for the mortgage?
No. It evaluates down-payment structure and purchase cash. Qualification also depends on income, debts, credit, stress-test rules, property eligibility and lender underwriting.
Continue through the Canadian home-buying decision
Move from purchase cash to exact transaction costs, monthly payment, household affordability, qualification pressure and the full ongoing cost of ownership.