Canada Down payment calculator

What a down payment really needs to cover

The deposit is only part of the cash you hand over at closing. On top sit closing costs — lender fees, legal work, title, surveys, and purchase taxes (stamp duty, land transfer tax, transfer taxes depending on market) — typically another 2–5% of the price. This calculator totals both so you know the real number to save toward.

The 20% threshold

In the US and Canada, putting down less than 20% triggers mortgage insurance — PMI in the US (roughly 0.5–1% of the loan per year) and mandatory CMHC insurance in Canada (2.8–4% of the loan, usually capitalised into the mortgage). Australian lenders charge LMI below a 20% deposit. UK lenders don't use insurance the same way but price by loan-to-value band — each 5% more deposit typically unlocks a cheaper rate tier.

Is waiting for 20% worth it?

Not automatically. The arithmetic to run: the cost of mortgage insurance until you reach 20% equity versus the rent you'd pay (and the price appreciation you'd miss) while saving the larger deposit. In fast-appreciating markets, buying earlier with insurance often wins; in flat markets, the bigger deposit usually does. The rent vs. buy calculator handles the fuller comparison.

Don't drain the tank

Lenders also like seeing post-closing reserves, and you'll want them anyway: moving, immediate repairs, appliances, and the first months of ownership reliably cost more than expected. A deposit that consumes every unit of savings is too big — keep your emergency fund out of the deposit math.