How much down payment do you need to buy a home in Ottawa? — the minimum, the 20% question, and where the money comes from
The minimum down payment is federal and it is not a flat 5%: it steps at $500,000 and again at $1.5 million, above which mortgage insurance is not available at all. Under 20% down you pay a CMHC premium, and in Ontario the sales tax on that premium is the one piece you cannot roll into the mortgage. The FHSA and the RRSP Home Buyers’ Plan are where most first down payments now come from — and both punish being opened the same week you make an offer.