The minimum in Canada is five per cent of the purchase price on the first portion, with a higher percentage required above that. But the minimum and the number that makes your life comfortable are two different figures, and the gap between them is worth understanding before you start looking.
The short version: Five per cent gets you in the door. Twenty per cent removes mortgage default insurance. Anything between the two works, and the right answer depends on how much cash you want left over on possession day — not on hitting a round number.
Why the minimum isn't the target
If your down payment is under twenty per cent, your lender requires mortgage default insurance. The premium is calculated on your mortgage amount and is normally added to the loan rather than paid up front, which means you carry it — with interest — for the life of the mortgage. Confirm the current premium tiers with your broker, because they're set by the insurers and they do change.
That doesn't make a smaller down payment a mistake. Waiting three years to save the difference has its own cost, and for a lot of first-time buyers, getting in earlier with insurance attached is the better outcome. It's a trade, not a rule.
What people forget to leave money for
The down payment is not the last cheque you write. Closing costs, moving, the immediate repairs you find in week one, and the furniture for the rooms you didn't have before all land in the same month. I've watched buyers stretch to twenty per cent and then have nothing left when the hot water tank fails in November.
- Property transfer tax, unless you qualify for an exemption
- Legal or notary fees and disbursements
- Inspection, and any specialist follow-up it triggers
- Adjustments for property tax and strata fees the seller prepaid
Property transfer tax rules and the first-time buyers' exemption thresholds change periodically. Check the current BC figures before budgeting from this post. Last updated: January 14, 2026.
So what should you actually do?
Get a real pre-approval before anything else. It tells you your ceiling, your rate hold and your monthly payment at that price, and it turns this whole question from hypothetical into arithmetic. Then decide how much cash you want sitting in the account the day after possession, and work backwards from there.
If you want to run your own numbers with someone who isn't trying to sell you a mortgage, book a call. Twenty minutes, no obligation, and I'll tell you honestly if the answer is "wait a year."
Teagan Adams, REALTOR®
Born and raised in Kelowna. I write these to answer the questions I get asked every week — one question per post, answered properly.
