Are you wondering how much you really need for a down payment to buy in Brockville or anywhere in Leeds and Grenville? You are not alone. Understanding Canada’s rules, insurance, and your true cash-to-close makes your search smoother and more confident. In this guide, you will learn the minimum down payment rules, how insured and conventional mortgages differ, how gift funds and the RRSP Home Buyers’ Plan work, easy Brockville price-band examples, and a quick calculator you can use today. Let’s dive in.
Minimum down payment in Canada
Canada sets minimum down payment rules that apply across Ontario, including Brockville. The rules depend on the purchase price:
- Up to $500,000: 5% of the purchase price.
- $500,001 to $999,999: 5% of the first $500,000 plus 10% of the portion above $500,000.
- $1,000,000 and above: 20% of the purchase price.
This minimum determines whether your mortgage needs default insurance. If your down payment is less than 20%, insurance is required. If it is 20% or more, it is not required.
Quick rule of thumb for Brockville buyers
Many Brockville and Leeds and Grenville homes fall at or below $500,000, which means the minimum is 5% of the price. If you are shopping higher, especially for newer or larger homes or select rural properties, you may land in the $500,000 to $999,999 band that requires more than 5%.
Insured vs. conventional mortgages
An insured mortgage applies when your down payment is less than 20%. Mortgage default insurance protects the lender if a borrower defaults. Major insurers include CMHC, Sagen, and Canada Guaranty. The insurance premium is charged as a percentage of the mortgage and is typically added to your mortgage balance, so you pay it over time. You can read more in CMHC’s overview of mortgage loan insurance.
A conventional mortgage applies when your down payment is 20% or more. In that case, mortgage default insurance is not required. Your lender will still assess your income, credit, and debt ratios.
Amortization, interest, and qualifying
- For insured mortgages, the maximum amortization is typically 25 years for standard purchases.
- Conventional mortgages can often go longer, such as up to 30 years, depending on the lender.
- Lenders test affordability through Gross Debt Service and Total Debt Service ratios. Your loan-to-value (LTV) matters here too. A lower down payment means a higher LTV, which affects insurance costs and qualifying.
Using gift funds and the RRSP Home Buyers’ Plan
You can combine multiple sources to build your down payment. Two common ones are gifted funds and RRSP withdrawals through the Home Buyers’ Plan.
Gifted down payments
Many lenders accept gifts from immediate family members. Be ready to provide:
- A signed gift letter confirming the amount, the relationship, that it is a gift and that no repayment is expected.
- Bank statements from the donor to verify source of funds and documentation showing the transfer into your account.
- Extra verification if the source is cash or a third party. Some lenders may refuse gifts that cannot be properly documented.
For insured mortgages, most insurers allow gifts from immediate family with proper documentation. Lender policies can vary, so confirm early with your lender or mortgage broker.
RRSP Home Buyers’ Plan (HBP)
The RRSP HBP allows eligible buyers to withdraw up to $35,000 from their RRSPs for a qualifying home, or up to $70,000 for a couple if both qualify. Withdrawn funds must be repaid over 15 years, and funds generally must have been in the RRSP for at least 90 days before withdrawal. Review the CRA’s detailed guidance on the Home Buyers’ Plan to confirm eligibility and timing.
Key points:
- The HBP is usually for first-time buyers, with some exceptions outlined by CRA.
- It helps with the down payment but does not cover closing costs.
- Plan ahead so RRSP timing does not delay your purchase.
Documentation lenders will want
To qualify smoothly, expect to provide:
- Photo ID, employment verification, recent pay stubs, and tax documents.
- Proof of down payment sources: bank or investment statements, sale proceeds, RRSP contribution and withdrawal forms for HBP, and gift letters with donor records for gifts.
- Details of current debts and consent for a credit check.
Brockville price-band examples
Numbers make the rules clearer. Below are three simple scenarios that follow Canada’s minimum down payment rules. These are illustrative examples only. Always verify current market pricing with a local REALTOR.
- Entry-level house example: $350,000
- Minimum down: 5% of $350,000 = $17,500
- Mortgage before insurance: $350,000 − $17,500 = $332,500
- Insurance required: Yes (less than 20% down). The insurance premium is added to your mortgage balance. For current premium tables, check CMHC’s mortgage loan insurance.
- Mid-range or move-up example: $650,000
- Minimum down: 5% of first $500,000 ($25,000) plus 10% of $150,000 ($15,000) = $40,000
- Mortgage before insurance: $650,000 − $40,000 = $610,000
- Insurance required: Yes. Down payment is about 6.15% of price, so an insurance premium applies.
- Higher-priced example: $1,200,000
- Minimum down: 20% of $1,200,000 = $240,000
- Mortgage: $960,000
- Insurance required: No. With 20% down or more, insurance is not required.
Note that for insured mortgages, the premium increases your actual mortgage balance above price minus down payment. That affects monthly payments and qualifying ratios.
Quick down payment calculator you can use
Use this simple workflow to estimate your minimum down payment and mortgage amount:
- Enter the purchase price (P).
- Calculate your minimum down:
- If P is at or under $500,000: Down = P × 0.05
- If P is between $500,001 and $999,999: Down = (500,000 × 0.05) + ((P − 500,000) × 0.10)
- If P is $1,000,000 or above: Down = P × 0.20
- Mortgage before insurance = P − Down.
- If Down is less than 20% and the price is under $1,000,000, mortgage insurance applies. Check an insurer’s current premium table and add the premium to your mortgage amount.
- Add estimated closing costs so you know your total cash needed at closing.
Do not forget closing costs in Ontario
Your down payment is not your only cash requirement. Plan for these typical closing items:
- Land transfer tax. First-time buyers may qualify for a refund. Review the Government of Ontario’s guidance on land transfer tax and refunds.
- Legal fees and disbursements.
- Title insurance.
- Home inspection.
- Appraisal fee if required by the lender.
- Property insurance for your first year.
- Interest adjustments, utility adjustments, and HST where applicable.
- Mortgage default insurance premium if your mortgage is insured.
Pre-approval checklist
Getting pre-approved clarifies your price range and strengthens your offer. Lenders commonly ask for:
- Government ID and Social Insurance Number.
- Recent pay stubs and employer contact details.
- The last two years of Notices of Assessment and tax returns. Self-employed buyers may need T1s, business financials, and accountant info.
- Recent bank statements and statements for other assets, including RRSPs if using the HBP.
- Documentation for your down payment source: savings statements, sale proceeds, gift letter and donor bank records, and RRSP withdrawal plan.
- Details of current debts and permission to pull your credit report.
- A copy of the purchase agreement if you are already under offer.
For additional consumer guidance and checklists, visit the Government of Canada’s Financial Consumer Agency of Canada mortgage resources and CMHC’s mortgage loan insurance pages.
Local steps for Brockville buyers
- Get pre-approved before you tour homes so you can move quickly and negotiate with confidence.
- If you will use gift funds or the HBP, start the paperwork early. Timing and documentation matter.
- If you are considering rural properties in Leeds and Grenville, ask your lender about appraisals, access, well, and septic considerations.
- Confirm closing cost estimates and any first-time buyer refund eligibility in advance so there are no surprises.
Next steps
A clear down payment plan makes your Brockville search faster and less stressful. If you want a tailored budget, a list of properties that fit your price band, or help coordinating your pre-approval, reach out to a local expert who knows the nuances of Leeds and Grenville. Connect with Gerard Cabrera to map your next steps, request curated listings, or get your Instant Home Valuation.
FAQs
How much is the minimum down payment to buy a $400,000 home in Brockville?
- The minimum is 5% of the price. On $400,000, that is $20,000. Mortgage default insurance would apply because the down payment is under 20%.
What is the difference between insured and conventional mortgages in Canada?
- Insured mortgages have less than 20% down and require a default insurance premium that is usually added to your mortgage. Conventional mortgages have 20% or more down and do not require insurance.
Can parents or family gift my down payment in Ontario?
- Yes, many lenders accept gifted funds from immediate family. You will need a signed gift letter and documentation showing the donor’s source of funds and the transfer into your account.
How does the RRSP Home Buyers’ Plan help with a down payment?
- Eligible buyers can withdraw up to $35,000 each from RRSPs to buy or build a qualifying home, then repay over 15 years. Funds generally must be in the RRSP for at least 90 days before withdrawal.
What closing costs should I expect in Ontario besides the down payment?
- Plan for land transfer tax, legal fees, title insurance, inspection, potential appraisal, property insurance, and adjustments. First-time buyer refunds may apply to land transfer tax.
Can I get a 30-year amortization in Canada?
- For insured mortgages, the standard maximum is typically 25 years. Conventional mortgages can often go longer, such as up to 30 years, depending on the lender.
