How Much Down Payment Do You Need to Buy a House in Toronto? A Clear Guide for 2025 Buyers

If you’re searching “How much down payment do you need to buy a house in Toronto?” you’re not alone—this is one of the most common questions buyers Google when they start planning their first purchase. The rules seem confusing, housing prices feel intimidating, and everyone has different advice. The good news? Understanding your down payment is simpler than you think—and once you know where you stand, buying a home in the Toronto or GTA market becomes much more achievable.

The Minimum Down Payment Depends on the Price of the Home

Canada’s down payment rules are the same nationwide, including Toronto and the GTA. Here’s the breakdown:

• 5% on the first $500,000
• 10% on the portion between $500,000 and $1,499,999
• 20% for homes $1.5M+

So, if you buy a $650,000 condo in Toronto, your minimum down payment would be:

• 5% of $500,000 = $25,000
• 10% of remaining $150,000 = $15,000
  Total minimum: $40,000

This is where many first-time buyers realize the market may be more accessible than expected.

What About Mortgage Insurance?

If your down payment is under 20%, you’ll need CMHC (or similar) mortgage insurance.
This cost gets added to your mortgage—it doesn’t increase your upfront expenses—but it does slightly raise your monthly payment. For most first-time buyers in Toronto, this is completely normal and part of a typical mortgage structure.

Toronto Buyers: What Does a 5% Down Payment Actually Look Like?

Many Toronto and GTA homes—especially condos, stacked townhomes, and entry-level properties—still qualify for the 5% and 10% tiers. For example:

• A $480,000 Mississauga condo → $24,000 down
• A $515,000 Scarborough condo → $28,500 down
• A $590,000 Vaughan townhouse-condo → $34,000 down

Understanding these numbers helps you set a realistic savings target.

Programs That Help Reduce Your Upfront Costs

If you’re a first-time buyer, several incentives can support your down payment:

• First Home Savings Account (FHSA): Tax-free contributions + tax-free withdrawals
• RRSP Home Buyers’ Plan (HBP): Borrow up to $60,000 from your RRSP
• Land Transfer Tax Rebates: Up to $4,000 in Ontario + up to $4,475 in Toronto

These programs can make your down payment feel significantly more manageable.

You’re Closer to Buying Than You Think!

Understanding how much down payment you need to buy a house in Toronto is the first step toward turning your homeownership goals into a real plan. With the right financing strategy and a clear picture of your options, buying in Toronto or the GTA is absolutely achievable. If you want personalized numbers, tailored advice, and a friendly team to guide you through every step, the Lisbeth Herrera Real Estate Team is here to help you take the next step with confidence.