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Less than you probably fear. But the minimum is rarely the number I'd tell you to aim for.
Almost every first-time buyer asks me this in the first ten minutes, so I'll explain it the way I do at the kitchen table.
The minimum
The same federal rules apply across Canada, Vancouver included:
- 5% of the first $500,000
- 10% of whatever sits between $500,000 and $1.5 million
- 20% of the whole price once a home hits $1.5 million
Since December 2024, insured mortgages go up to $1.5 million. Before that, the ceiling was $1 million. Plenty of Metro Vancouver condos and townhouses sit between those two numbers, so that change opened doors for a lot of buyers.
In dollars
Purchase price | Minimum down payment | Percent of price |
|---|---|---|
$500,000 | $25,000 | 5% |
$750,000 | $50,000 | 6.7% |
$1,000,000 | $75,000 | 7.5% |
$1,200,000 | $95,000 | 7.9% |
$1,400,000 | $115,000 | 8.2% |
$1,500,000 and up | 20% of the price | 20% |
Check the bottom row against the one above it. A $1.4 million home needs $115,000 down. A $1.5 million home needs $300,000. For $100,000 more in price, you need $185,000 more in cash. If your search sits close to that line, I'd keep your budget just under it.
Mortgage insurance
With less than 20% down, your mortgage has to be insured by CMHC, Sagen or Canada Guaranty. You pay a premium based on the size of the loan, and at the 5% minimum it runs about 4%.
Take a $1 million home with 7.5% down. The mortgage is $925,000 and the premium lands around $37,000. It's normally added to the mortgage, so you don't pay it at closing, but you do pay interest on it for years.
First-time buyers can also ask for a 30-year amortization on an insured mortgage. Your monthly payment drops. You pay more interest overall, and the insurance premium goes up a little.
Closing costs
These are separate from the down payment. Plan on roughly 1.5% to 4% of the price. They cover:
- Legal fees and title insurance
- A home inspection, or a strata document review for a condo
- Property transfer tax
- Adjustments for property tax and strata fees
- Moving, plus whatever you need to buy in the first week
If you're scraping together the bare minimum down, check what will be left in your account after closing day.
BC property transfer tax
This one is specific to our province. Qualifying first-time buyers can get a full or partial exemption from property transfer tax on homes up to about $860,000. The full exemption applies up to $835,000, then it phases out. You can save up to roughly $8,000.
There's a separate exemption for newly built homes with higher price limits, but you can't use both on the same purchase. If you're looking at a presale, ask about this early.
Buying new? First-time buyers can also claim a federal GST/HST rebate on a newly built home.
Thresholds change, so check the Province of BC's website for the current numbers before you count on them.
Where the money can come from
These are the sources I see most often:
- FHSA (First Home Savings Account): up to $40,000 over your lifetime. Contributions are tax-deductible, and you withdraw tax-free for a first home.
- RRSP Home Buyers' Plan: you can take out up to $60,000 per person and pay it back over time.
- A gift from family: most lenders accept one, with a signed letter confirming it isn't a loan.
- Your own savings, or money from selling something.
You can use the FHSA and the Home Buyers' Plan together, which adds up fast for a couple. Talk to your mortgage broker and your accountant about timing, because the order matters.
Should you put down the minimum?
These are the questions I ask my clients:
- Can you carry the payment in a tough month, not just a good one? Qualifying for a mortgage and feeling comfortable with it are two different things.
- What's in your account after closing? A condo can come with a special levy. I'd take a healthy savings balance over a slightly bigger down payment.
- Does more down change your premium or your rate? Sometimes a few thousand dollars moves you into a cheaper insurance tier. Sometimes it does nothing. Ask your broker to run both.
- How close are you to $1.5 million?
The minimum is a rule. It's not advice.
In short
You can buy with 5% on the first $500,000 and 10% on the rest, up to $1.5 million. Most first-timers I meet land somewhere in that range. But the down payment is one piece. Insurance, closing costs, transfer tax and the money you keep in the bank all decide whether the purchase works for you.
If you're thinking about buying, send me an email with the price range you have in mind and where your savings stand. I'll go through the numbers with you.
Katie Chao, REALTOR® | Behroyan & Associates
This post is general information, not financial or legal advice. Mortgage rules and BC tax thresholds change, so confirm current figures with your lender and the Province of BC before you decide.