How much down payment do I really need to buy a home in 2025?

If you’re a first-time home buyer in Ontario (or thinking about your next move), one of the top questions I hear is: “How much down payment do I really need right now?” I’ll walk you through what the rules say, what’s smart for 2025, and what it means for your budget in the Ottawa market.

What are the minimum requirements?

According to federal guidelines, here’s how the minimum down payment works in Canada:

• For a home priced at $500,000 or less, you need a down payment of 5% of the purchase price.

• For a home between $500,000 and $999,999, you’ll need 5% of the first $500,000 and 10% of the portion above that.

• For a home priced at $1 million or more, the minimum down payment jumps to 20%.

You can verify this on the official Government of Canada website.

So if you're buying a $750,000 home in Ottawa, your minimum would be:

• 5% of $500,000 = $25,000

• 10% of the remaining $250,000 = $25,000

• Total: $50,000

Why aim higher than the minimum?

The minimum gets you in the door, but here’s why going beyond it often makes more sense:

• A down payment under 20% requires CMHC mortgage default insurance, which adds cost. Learn more on CMHC’s website.

• A larger down payment means lower monthly payments and less interest over time.

• In competitive markets, buyers with stronger financials (including larger down payments) often get taken more seriously.

You can see an example cost comparison from this NerdWallet Canada breakdown.

What’s realistic in Ottawa in 2025?

Here’s what you can expect in actual dollar terms:

• A $450,000 home (still possible in a few Ottawa pockets) means a $22,500 minimum down payment.

• A $700,000 home will require a minimum of $45,000, though many aim for 10%+ to reduce insurance premiums.

• A $1 million+ home — you’ll need at least $200,000 down, no exceptions.

This reflects pricing seen across Ottawa’s most popular entry-level and move-up neighbourhoods in 2025. For an idea of what that looks like, explore this helpful Ottawa down payment guide.

So what should you do next?

1. Run your numbers. Use a trusted affordability calculator to see how much home you can comfortably afford.

2. Start your savings plan with a realistic timeline in mind (12–24 months for most buyers).

3. Get a pre-approval to make sure your down payment lines up with lender expectations.

4. Keep a cash buffer for closing costs, moving, and emergencies. Don’t empty your accounts on the down payment alone.

The takeaway

You can buy with as little as 5% down in many cases, but that doesn’t always mean you should. In Ottawa’s 2025 market, going beyond the minimum can lower your costs, strengthen your offers, and give you more peace of mind.

Want help working out what’s realistic for your income, timeline, and target neighbourhood? Let’s run the numbers together.