Montréal

Juan GutierrezMortgage broker · Quebec

What is Down payment? · Costs

Down payment

The down payment is the part of the price you pay with your own money; the rest is the mortgage. In Canada the minimum is 5% on the first $500,000 and 10% on the portion between $500,000 and $1,500,000; under 20% the loan must be insured.

Updated October 22, 2026

Depending on the country of origin it is called cuota inicial, enganche, entrada or pie; in Quebec French it is the mise de fonds. Accepted sources are savings, the FHSA, the HBP, a gift from a relative (with a gift letter) and, under conditions, funds from abroad with 90 days of bank history.

From $1,500,000 the minimum is 20% and the loan cannot be insured. On top of the down payment, set aside a separate amount for closing costs: welcome tax, notary, inspection and adjustments. How much depends on the property and the municipality; ask me for an estimate for your case at pre-approval.

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