Can You Buy a Home with 5% Down in Ontario?
If you’re thinking about buying a home, you’ve probably heard that you need a large down payment.
But in many cases, that’s not actually true.
In Canada, it’s possible to buy a home with as little as 5% down—depending on the purchase price and your overall financial situation.
Here’s how it works.
What does “5% down” actually mean?
Your down payment is the amount you pay upfront toward the purchase of your home.
In Canada, minimum down payment requirements are generally:
5% on the first $500,000 of the purchase price
10% on the portion between $500,000 and $999,999
20% for homes $1 million and over
So yes—5% down is possible, but it depends on the price of the home you’re buying.
What else is required?
While the down payment is important, it’s only one part of the picture.
To qualify for a mortgage, lenders will also look at:
your income
your existing debts
your credit history
your employment stability
All of these factors work together to determine what may be possible in your situation.
What about mortgage insurance?
If your down payment is less than 20%, your mortgage will typically require mortgage default insurance.
This insurance:
protects the lender
is added to your mortgage amount
is paid over time as part of your payments
It’s a standard part of many home purchases in Canada and something most buyers with less than 20% down will have.
What costs should you plan for?
Even with a 5% down payment, there are additional costs to be aware of, such as:
legal fees
land transfer tax
home inspections
moving expenses
Planning for these ahead of time can help avoid surprises.
Is 5% down the right choice?
For some people, buying with 5% down can make sense.
For others, waiting and saving a larger down payment may feel more comfortable.
There’s no one-size-fits-all answer—it depends on:
your financial situation
your goals
and your comfort level
I can help
If you’re wondering what this might look like for you, it can help to explore a few different scenarios.
I use a simple mortgage app that lets you:
see estimated purchase ranges
explore different down payment options
and get a general sense of what might be possible
It’s a helpful starting point if you’re in the early stages.
👉 If you’d like access, feel free to reach out and I can send it your way.
Final thoughts
Buying a home with 5% down is possible in Ontario—but it’s just one piece of a bigger picture.
Understanding how everything works together can help you make a decision that feels right for your life.