In Canada, the minimum down payment is 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million for an insured purchase, while putting 20% or more down lets you buy without mortgage insurance. The right amount depends on the price, your savings, and whether the insured or uninsured product fits you better overall.

What is the minimum down payment on an Edmonton home?

The minimum is tiered, not a single percentage. On a purchase at or under $500,000, you can buy with 5% down, provided the mortgage is insured and you qualify under the stress test and lender rules.

On a higher-priced home, you pay 5% on the first $500,000 and 10% on the part above that, up to the insured cap of $1.5 million. That blended calculation is why two buyers at different price points end up with very different minimums, even though both use the smallest allowed down payment.

If you are buying your first home, my First Home Guide for Edmonton walks through how the down payment fits with closing costs, pre-approval, and your offer timeline.

When does 20% down change the mortgage you get?

At 20% down, mortgage insurance is no longer required. That removes the insurance premium from the mortgage, which can lower the total amount you borrow and the interest you pay over time.

It also changes the product. An uninsured mortgage follows a different set of lender rules than an insured one, and the rate, amortization options, and property rules can differ. More down payment is not automatically better if it leaves you with no reserve for moving, repairs, or an emergency fund.

Why do some buyers choose an insured mortgage on purpose?

An insured mortgage can be a deliberate choice, not just a fallback for buyers with less saved. Because the insurance protects the lender if the borrower defaults, insured files can access lower rates than comparable uninsured files. See CMHC insurance: what it protects, what it costs, what it unlocks.

That rate advantage has to be weighed against the premium, which is added to the mortgage rather than paid in cash up front. For some buyers, especially those who value keeping cash available, the insured option works out well.

“Great rates, fast closing, and excellent customer service.” — Madhav Dhakal, Google review

Credit: via Wikimedia Commons — downtown Edmonton.

What else should you budget for besides the down payment?

Your down payment is not your total cash to close. You will also need funds for legal fees, a home inspection if you choose one, an appraisal if the lender requires it, and other closing costs that vary by purchase.

Lenders also need to see where the down payment came from. Savings, investments, or a gift from an immediate family member can all work, but each source needs a paper trail. Having those documents ready before you write an offer makes the approval much smoother. See gifted down payments: letters, timing and source of funds.

If your mortgage is coming up for renewal instead, use the Mortgage Renewal Check to review your options before you sign anything back to your current lender.

How do you decide how much to put down?

Start with the minimum for your price, then test 20% and one option in between. Compare the monthly payment, the total borrowed including any premium, the rate available on each version, and how much cash you keep after closing. See how much house the down payment actually buys you.

Not sure whether insured or uninsured is better for your purchase? Call me at (780) 722-5621 and I will run both options on your real numbers before you commit to an offer. Or start with the Pre-Approval & Refinance Check.

By Travis Bannert, Realtor and Mortgage Broker

Travis Bannert, Mortgage Broker | Next Door Mortgages, BFL Dominion Lending Centres | (780) 722-5621 | nextdoormortgages.com