Mortgage Down Payment Calculator 2020

Purchase Pricehelp

The purchase price of your home.

$ 500,000

Unsure about your purchase price?
Find out how much you can afford.

Down Paymenthelp

The amount paid upfront. In Canada, the minimum down payment is 5%. Mortgage default insurance (commonly referred to as CMHC insurance) is required for down payments under 20%.

5
%
minimum
10
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15
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20
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25
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Find out how we calculate your
minimum down payment

Down Payment$75,000
CMHC Insurance Premium$11,900
Total Mortgage$436,900
info
For a 15% down payment, your CMHC insurance premium is 2.8% of your mortgage principal.

Note: In Ontario, the CMHC premium is subject to an additional 8% HST.

Mortgage Mini-Calculator

Interest Ratehelp

The annual interest rate on the mortgage loan amount. A lower interest rate can drastically reduce your mortgage payments.

3.00 %

Amortization Period

25 Years

Our Rate (5 Yr. fixed)

2.29%*Get This Low Rate

0%10%
Your Monthly Payment
$2,0682.07k
/month
money
Save over $10,000 on your mortgage.
2.29%*5-Year Fixed

Lower than the Major Banks

2.69%
2.97%
2.44%
2.99%

* For mortgages of at least $500,000 with down payment under 20%.
WOWA assumes no liability for the accuracy of information presented.
† For mortgages of at least $500,000 over a 25-year amortization period.

Down Payment

The down payment is the amount you will pay upfront to obtain a mortgage.

What’s my minimum down payment?

Your minimum down payment depends on the purchase price of your property.

  • If your purchase price is under $500,000, your minimum down payment is 5% of the purchase price.
  • If your purchase price is $500,000 to $999,999, your minimum down payment is 5% of the first $500,000, plus 10% of the remaining portion.
  • If your purchase price is $1,000,000 or more, your minimum down payment is 20% of the purchase price.

If you’re self-employed or have poor credit, your lender may require a higher down payment.

Are there additional costs or restrictions associated with small down payments?

Yes. If your down payment is below 20% of the purchase price,

  • you will be required to purchase mortgage default insurance, and so
  • your amortization period cannot exceed 25 years.

For more information, see the section on CMHC insurance below.

CMHC Insurance

Mortgage default insurance, also known as Canada Mortgage and Housing Corporation (CMHC) Insurance, protects your mortgage lender in the case of default.

Do I need CMHC insurance?

Under Office of the Superintendent of Financial Institutions (OSFI) regulations, you are required to purchase CMHC insurance if your down payment is below 20%.

You may be ineligible for CMHC insurance if:

  • your purchase price is $1,000,000 or above, or
  • your amortization period is longer than 25 years.

In these cases, you must make a down payment of 20% or higher.

How much does CMHC insurance cost?

Your CMHC insurance cost is calculated as a percentage of your purchase price. The exact percentage depends on your down payment amount, and decreases for larger down payments.

Since March 17, 2017, the following CMHC premiums apply in most situations:

Down Payment (% of Purchase Price)5–9.99%10–14.99%15–19.99%
CMHC Insurance (% of Mortgage Amount)4.00%3.10%2.80%

How do I pay for CMHC insurance?

Your lender is actually the party responsible for paying CMHC insurance costs. In the majority of cases, your lender will pass these costs down to you by adding the CMHC insurance premium to your mortgage loan amount. This will slightly increase your monthly or bi-weekly payment.

In some cases, your lender may allow you to pay CMHC insurance costs as a lump-sum, or not pass down the cost to you at all. Contact your lender for more details.

What is a high-ratio mortgage?

A mortgage with a down payment below 20% is known as a high-ratio mortgage. The term ratio refers to the size of your mortgage loan amount as a percentage of your total purchase price.

All high-ratio mortgages require the purchase of CMHC insurance, since they generally carry a higher risk of default.

Ready to buy?

There are many moving parts involved with buying a home, and it is sometimes overwhelming. Many buyers often make the same mistakes over and over again, potentially costing them their dream home or tens of thousands of dollars. Read our guide on what you should do before buying a property and find a top real estate agent in your area that can help you with their professional experience and connections.

This calculator is provided for general information purposes only. WOWA does not guarantee the accuracy of information shown, and is not responsible for any consequences of the use of the calculator.
* Rates shown are on approved credit and subject to change without notice.