Down Payment CalculatorBritish Columbia (2026)
Calculate the minimum down payment required for any home price in BC. Compare 5%, 10%, 15%, and 20% down payment scenarios side-by-side to see how each option affects your CMHC insurance, total mortgage, and monthly payments.
Updated for 2026 · Includes December 2024 rule changes
Purchase Price
Minimum Down Payment
$25,000
5.0% of $500,000
Breakdown
Compare Down Payment Options
5%
Down Payment
$25,000
10%
Down Payment
$50,000
15%
Down Payment
$75,000
20%
Down Payment
$100,000
Your home is under $500,000 — the minimum down payment is 5% of the full price.
BC Advantage: No PST on CMHC premiums — you save compared to Ontario (8%) and Quebec (9%).
This calculator provides estimates for educational purposes only. Down payment requirements follow CMHC guidelines effective December 15, 2024. Monthly payments assume a 4.5% interest rate with Canadian semi-annual compounding. Actual mortgage approval depends on lender requirements, credit history, and property eligibility. For a personalized quote, contact me for a free consultation.
Minimum Down Payment Rules in Canada
Canada uses a tiered minimum down payment system. The rules changed significantly on December 15, 2024 when the maximum insurable purchase price increased from $1 million to $1.5 million. Here's how it works:
| Purchase Price | Minimum Down Payment |
|---|---|
| Up to $500,000 | 5% of purchase price |
| $500,001 – $1,500,000 | 5% on the first $500K + 10% on the remainder |
| Above $1,500,000 | 20% of full purchase price |
$500,000 Home
$25,000 minimum
5% of price
5% × $500,000
$750,000 Home
$50,000 minimum
6.67% of price
(5% × $500K) + (10% × $250K)
$1,000,000 Home
$75,000 minimum
7.5% of price
(5% × $500K) + (10% × $500K)
$1,500,000 Home
$125,000 minimum
8.33% of price
(5% × $500K) + (10% × $1M)
Fraser Valley context: With the average detached home in Surrey priced around $1,400,000 and townhomes around $850,000, most buyers in the Fraser Valley need between $60,000 and $115,000 for their minimum down payment.
Where Can Your Down Payment Come From?
Your lender will verify the source of your down payment funds. Where the money comes from affects your CMHC premium rate and whether your application is approved.
✅ Accepted Sources (Standard CMHC Rates)
⚠️ Conditional Sources (Higher CMHC Rates)
❌ Not Accepted
90-day seasoning rule: Most lenders require down payment funds to be in your account for at least 90 days before your mortgage application. Plan ahead and move your funds early to avoid delays.
How CMHC Insurance Affects Your Down Payment
When your down payment is less than 20%, CMHC mortgage insurance is required. The premium is calculated as a percentage of your mortgage amount and added to your loan balance. Lower down payments mean higher premium rates.
| Down Payment | LTV Ratio | CMHC Rate |
|---|---|---|
| 35%+ | Up to 65% | 0.60% |
| 25% – 34.99% | 65.01% – 75% | 1.70% |
| 20% – 24.99% | 75.01% – 80% | 2.40% |
| 15% – 19.99% | 80.01% – 85% | 2.80% |
| 10% – 14.99% | 85.01% – 90% | 3.10% |
| 5% – 9.99% | 90.01% – 95% | 4.00% |
BC Advantage: British Columbia does not charge PST on CMHC insurance premiums. Buyers in Ontario pay 8% PST and Quebec pays 9% QST on top of the premium — paid upfront at closing.
For a detailed breakdown of your CMHC premium with different down payment amounts, use my CMHC Insurance Calculator.
BC First-Time Buyer Programs
First-time home buyers in BC have access to several federal and provincial programs that can reduce your down payment burden and overall costs. Here are the four most impactful:
First Home Savings Account (FHSA)
RRSP Home Buyers' Plan (HBP)
BC Property Transfer Tax Exemption
GST New Home Rebate
Using both the FHSA and RRSP HBP together, a couple could access up to $200,000 in tax-advantaged down payment funds ($120,000 from RRSP HBP + $80,000 from FHSAs). I recommend opening an FHSA as early as possible to maximize your contribution room.
5% vs. 20% Down Payment — Which Is Better?
This is one of the most common questions I get from buyers. Let me break it down with a real example using a $700,000 home in Surrey — a typical price point for townhomes in the Fraser Valley.
5% Down ($35,000)
20% Down ($140,000)
Pros of Buying with 5% Down
Pros of Waiting for 20% Down
The bottom line: If home prices are rising faster than you can save, buying with 5% down often makes financial sense despite the CMHC premium. If prices are stable and you're close to 20%, waiting a few more months can save you thousands. I help my clients run the numbers for their specific situation — reach out for a free consultation.
Frequently Asked Questions
What is the minimum down payment in Canada?
The minimum down payment in Canada is 5% on the first $500,000 of the purchase price, 10% on any portion between $500,000 and $1,500,000, and 20% for homes priced above $1.5 million. For example, on a $750,000 home the minimum is $50,000: (5% x $500,000) + (10% x $250,000).
How much down payment do I need for a house in BC?
The down payment rules in BC follow federal regulations. For a typical $800,000 home in Surrey or the Fraser Valley, you need at least $55,000 down (5% of $500K + 10% of $300K). For homes over $1.5 million, the minimum is 20% of the full price.
Can I buy a house in BC with 5% down?
Yes, you can buy a home in BC with 5% down if the purchase price is $500,000 or less. For homes between $500,000 and $1.5 million, you need 5% on the first $500K and 10% on the remainder. CMHC mortgage insurance is required for any down payment below 20%.
What is the difference between 5% and 20% down payment?
With 5% down, you pay less upfront but must pay CMHC mortgage insurance (up to 4% of the mortgage amount), which increases your total mortgage and monthly payments. With 20% down, you avoid CMHC insurance entirely, resulting in a lower mortgage balance and monthly payment — but you need significantly more savings upfront.
What is CMHC mortgage insurance?
CMHC insurance (mortgage default insurance) protects the lender if you default on your mortgage. It is required when your down payment is less than 20%. The premium ranges from 0.60% to 4.00% of the mortgage amount and is added to your loan balance. BC buyers pay no PST on CMHC premiums.
Can I use my RRSP for a down payment in BC?
Yes. The Home Buyers' Plan (HBP) allows first-time buyers to withdraw up to $60,000 per person from RRSPs tax-free for a down payment. Couples can withdraw up to $120,000 combined. The amount must be repaid to your RRSP over 15 years.
What is the First Home Savings Account (FHSA)?
The FHSA lets Canadians save up to $8,000 per year (lifetime maximum $40,000) tax-free for a first home purchase. Contributions are tax-deductible and withdrawals for a qualifying home are completely tax-free. You can use both the FHSA and RRSP Home Buyers' Plan together.
Do I pay PST on CMHC insurance in British Columbia?
No. British Columbia does not charge PST on CMHC mortgage insurance premiums. This is a significant advantage compared to Ontario (8% PST) and Quebec (9% QST). On a $30,000 premium, you save $2,400 compared to buying in Ontario.
Can I use a gift from family for my down payment?
Yes. Gifted funds from immediate family members (parents, grandparents, siblings) are accepted as a traditional down payment source by all lenders. You will need a signed gift letter confirming the funds are a true gift and not a loan. The funds should be in your account for at least 90 days before applying.
Is it better to save for 20% or buy with 5% down?
It depends on your situation. Buying with 5% down lets you enter the market sooner, but CMHC insurance adds to your costs. Saving for 20% eliminates insurance but takes longer — and home prices may rise in the meantime. In a rising market, buying sooner with less down can sometimes be more cost-effective despite the insurance premium.
Related Calculators
CMHC Insurance Calculator
Calculate your exact CMHC mortgage insurance premium with detailed breakdowns and rate tables.
Mortgage Affordability Calculator
Calculate how much home you can afford based on income, debts, and the Canadian stress test.
Property Transfer Tax Calculator
Estimate your BC property transfer tax including first-time buyer and new home exemptions.
GST New Home Rebate Calculator
Find out if you qualify for the BC GST new home rebate and estimate your potential savings.