What is the minimum down payment to buy a house in Canada?

The minimum down payment in Canada is 5% for homes priced under $500,000, 5% on the first $500,000 plus 10% on the portion above $500,000 for homes $500K–$1M, and 20% for homes over $1 million (which are ineligible for CMHC insurance). With less than 20% down, you also pay CMHC mortgage insurance premiums of 2.8–4.0% of the mortgage amount.

What credit score do I need to get a mortgage in Canada?

Most lenders require a minimum credit score of 680 for the best rates. You can qualify with a score as low as 600–620 with some lenders (often at higher rates), and alternative lenders may work with scores below 600. A score above 750 puts you in the best rate tier. Even if your score is borderline, a mortgage broker can find lenders who will work with you.

What is the mortgage stress test in Canada?

All Canadian mortgage applicants must qualify at the higher of your actual rate plus 2%, or 5.25% — whichever is greater. This "stress test" ensures you could handle a rate increase. At current rates, most applicants stress test at roughly 6.5–7%. A broker will run your numbers through the stress test before applying, so you know exactly what you qualify for.

How does the First Home Savings Account (FHSA) work?

The FHSA is a registered account where you can contribute up to $8,000/year (lifetime $40,000). Contributions are tax-deductible like an RRSP, and withdrawals for a first home purchase are tax-free like a TFSA. You must be a first-time buyer and a Canadian resident. You can also make a one-time transfer from your RRSP under the Home Buyers' Plan to further supplement your down payment.

Free Quiz — 2026

First-Time Buyer Readiness Score — Find Out Where You Stand

Buying your first home in Canada involves a lot of moving parts. This 2-minute quiz scores your readiness across 5 key areas and gives you a personalized action plan — whether you're ready now or need 12 more months.

Best available rate today: 4.89% (5-year fixed, broker)

Question 1 of 80% complete

Which province are you buying in?

What the Readiness Score Measures

The score is built on the same 5 dimensions that mortgage lenders actually evaluate. Understanding where you stand on each one tells you exactly where to focus your energy.

Income (25 pts)

Does your household income support the mortgage payments on homes in your target province? Scored relative to typical home prices in your area.

Down Payment (25 pts)

Have you saved enough for the minimum down payment — or ideally 20% to avoid CMHC insurance? Scored against the minimum required for your province.

Credit Score (20 pts)

Your credit score determines which lenders you qualify for and what rate you receive. Above 750 = excellent; below 650 = limited options at higher rates.

Debt Load (15 pts)

Existing monthly debt payments reduce your qualifying amount dollar-for-dollar. Low debt dramatically increases what you can borrow.

Employment (15 pts)

Lenders want to see stable income history. Permanent employment scores highest; self-employed with 2+ years of T1 generals also qualifies well.

How to Improve Your Score

FHSA Guide

Open and maximize your FHSA

The First Home Savings Account gives you a tax deduction now and tax-free withdrawals later. If you haven't opened one, you're leaving money on the table every year.

Stress Test

Understand the stress test before applying

Many first-time buyers are shocked to learn they qualify for less than expected. Understanding how the stress test works lets you plan your target price range correctly.

Down Payment

Build your down payment strategically

Between the FHSA ($40K lifetime), RRSP Home Buyers' Plan ($35K), and dedicated savings, there are multiple vehicles to build your down payment with government help.

First-Time Buyer Readiness Score — Find Out Where You Stand

Which province are you buying in?

What the Readiness Score Measures

How to Improve Your Score

Frequently Asked Questions