Mortgage Guide
The federal minimum down payment rules applied to Lower Mainland prices, the $1.5 million cliff, and where your down payment is allowed to come from.
"How much down payment do I need in BC?" is the first question almost every buyer asks us, and the answer changes sharply depending on the price. The rules are federal, so they are the same in Richmond as in Halifax. But at Lower Mainland prices, the jumps between price bands matter a lot. This guide sets out the current minimums, works through real price points, and covers where the money can come from. Every rule is sourced from the Financial Consumer Agency of Canada (FCAC), CMHC or the Department of Finance.
BC follows the federal rules: 5% of the first $500,000 of the purchase price, plus 10% of the portion from $500,000 up to $1.5 million. Homes priced at $1.5 million or more need at least 20% down. That is the table on FCAC's down payment page, reflecting the reforms that took effect December 15, 2024.
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| $500,000 to under $1.5 million | 5% of the first $500,000 + 10% of the rest |
| $1.5 million or more | 20% of the price |
The Department of Finance's December 15, 2024 release confirms the price cap for insured mortgages was raised from $1 million to $1.5 million. CMHC's requirements page says the purchase price must be below $1,500,000 for homeowner loans.
| Purchase price | Calculation | Minimum down | As % of price |
|---|---|---|---|
| $500,000 | 5% × $500,000 | $25,000 | 5.0% |
| $650,000 | $25,000 + 10% × $150,000 | $40,000 | 6.2% |
| $800,000 | $25,000 + 10% × $300,000 | $55,000 | 6.9% |
| $1,000,000 | $25,000 + 10% × $500,000 | $75,000 | 7.5% |
| $1,200,000 | $25,000 + 10% × $700,000 | $95,000 | 7.9% |
| $1,499,000 | $25,000 + 10% × $999,000 | $124,900 | 8.3% |
| $1,500,000 | 20% × $1,500,000 | $300,000 | 20.0% |
The minimum is $55,000: 5% of the first $500,000 ($25,000) plus 10% of the remaining $300,000 ($30,000). With less than 20% down, the mortgage also needs default insurance.
Mortgage default insurance is only available on homes priced below $1.5 million. At $1.5 million or more, the mortgage must be uninsured, which requires at least 20% down. The minimum jumps from about $125,000 just under the line to $300,000 at $1.5 million. If you are shopping near that price, a small change to the offer can more than double the cash you need. That makes $1.5 million the most important number in this guide for many Richmond and Vancouver detached and townhouse buyers.
With less than 20% down, the mortgage must be insured against default. The premium is a percentage of the loan, usually added to the mortgage. CMHC's current rates run from 2.80% to 4.00% for most down payments under 20%. Insured mortgages also come with qualification rules, including the mortgage stress test. Our guide to mortgage default insurance covers premiums in detail, and insured vs uninsured compares the two paths.
It depends on your cash, your other goals and the lender's offers. A bigger down payment reduces the loan, the insurance premium and the qualifying payment. Keeping cash back protects you against closing costs and emergencies. A broker can model both options for your file. We won't tell you one is always right.
FCAC says the minimum down payment must come from your own funds. CMHC's requirements page explains what counts for an insured mortgage:
For insured mortgages, CMHC lists a non-repayable financial gift from a relative as a traditional down payment source, along with savings and proceeds from selling a property. Lenders will ask for documentation, usually a signed gift letter and proof the funds are in your account.
In limited cases. CMHC allows non-traditional down payments, such as unsecured personal loans or lines of credit, on 1- or 2-unit homes with 90.01% to 95% loan-to-value for borrowers with strong credit. It costs more: the insurance premium is 4.50% instead of 4.00%. Non-permanent residents are not eligible.
First-time buyers can draw on a First Home Savings Account (up to $40,000 of contributions) and the RRSP Home Buyers' Plan (up to $60,000 per person), and can use both for the same home. Our guide to using the FHSA and Home Buyers' Plan together walks through the conditions.
CMHC tells buyers to budget closing costs of 1.5% to 4% of the purchase price, covering items like legal fees, applicable taxes and adjustments. In BC the largest of these is usually property transfer tax. First-time buyers may qualify for a full or partial exemption: see our guide to the first time home buyer exemption BC and price it with the land transfer tax calculator.
So when you ask "how much down payment do I need in BC?", the real question is how much cash you need on completion day. That is the down payment, plus closing costs, plus a cushion.
Blue Sky Mortgage Group is a licensed BCFSA mortgage brokerage in Richmond. Call 778-991-3289 to talk through your numbers.
BC follows the federal rules: 5% of the first $500,000 of the purchase price, plus 10% of the portion from $500,000 up to $1.5 million. Homes priced at $1.5 million or more need at least 20% down.
The minimum is $55,000: 5% of the first $500,000 ($25,000) plus 10% of the remaining $300,000 ($30,000). With less than 20% down, the mortgage also needs default insurance.
Mortgage default insurance is only available on homes priced below $1.5 million. At $1.5 million or more, the mortgage must be uninsured, which requires at least 20% down. The minimum jumps from about $125,000 just under the line to $300,000 at $1.5 million.
For insured mortgages, CMHC lists a non-repayable financial gift from a relative as a traditional down payment source, along with savings and proceeds from selling a property. Lenders will ask for documentation, usually a signed gift letter and proof the funds are in your account.
In limited cases. CMHC allows non-traditional down payments, such as unsecured personal loans or lines of credit, on 1- or 2-unit homes with 90.01% to 95% loan-to-value for borrowers with strong credit. It costs more: the insurance premium is 4.50% instead of 4.00%. Non-permanent residents are not eligible.
Rules as of October 2026, from FCAC, CMHC and the Department of Finance Canada.
This is general information, not financial advice. Speak to a licensed mortgage professional about your situation.
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