Minimum down payment in Quebec in 2026: calculation, mortgage loan insurance and allowed sources

For an owner-occupied property (1 or 2 units), the minimum down payment is: • 5% on the portion of the price up to $500,000; • 10% on the portion of the price between $500,000 and $1.5 million. These parameters come from the Department of Finance Canada's mortgage reforms, in force for insurance applications submitted from December 15, 2024. For an insured loan, the property value must be under $1.5 million: at $1.5 million or more, the loan cannot be insured. Since a loan of more than 80% of the value must be insured, you need in practice at least 20% down. For a 3- or 4-unit building where you live in one unit, CMHC requires a minimum down payment of 10%.

• $300,000 property: 5% × $300,000 = $15,000. • $500,000 property: 5% × $500,000 = $25,000. • $760,000 property (CMHC's example): 5% × $500,000 + 10% × $260,000 = $25,000 + $26,000 = $51,000. With 20%, you would need $152,000. • $1,200,000 property: $25,000 + 10% × $700,000 = $95,000. • $1,500,000 property: the loan cannot be insured, so 20% minimum, or $300,000. These amounts are minimums. The lender also checks whether you can afford the payments (debt ratios and stress test): see our article How much house can you afford on $100K in Quebec? and our mortgage affordability calculator.

When the loan is more than 80% of the property value, it is a high-ratio loan, which must be insured. The premium is a one-time amount, calculated on the total loan amount, that can be added to the loan. According to CMHC's premium table for owner-occupied loans: • loan-to-value ratio from 80.01% to 85%: 2.80%; • from 85.01% to 90%: 3.10%; • from 90.01% to 95%: 4.00% (4.50% with a non-traditional down payment). Example: a $400,000 house with a $20,000 down payment (5%). The loan is $380,000, a 95% loan-to-value ratio. The premium is 4.00% × $380,000 = $15,200, and the loan becomes $395,200 if the premium is added to it. With $40,000 down (10%), the loan would be $360,000 and the premium 3.10%, or $11,160. In Quebec, the tax on insurance premiums is added. According to Revenu Québec, its rate is 9%, rising to 9.975% for premiums paid after December 31, 2026. On the $15,200 premium, that is $1,368 at 9%, or $1,516.20 at 9.975%. According to CMHC, this tax cannot be added to the loan amount: plan for it in cash, on top of the down payment. Ask your lender or notary when it will be paid. CMHC also lists a maximum amortization of 25 years for this product. Since December 15, 2024, a 30-year amortization on an insured loan is available to first-time buyers and buyers of newly built homes, according to the Department of Finance. According to CMHC, an amortization period of more than 25 years carries a 0.20% premium surcharge. Other conditions apply to any CMHC-insured loan, such as a minimum credit score of 600 for at least one borrower or guarantor. CMHC is not the only insurer: another insurer's premiums and conditions may differ.

According to CMHC, traditional sources include: • your savings; • the proceeds from selling a property; • a non-repayable financial gift from a relative. In some cases, CMHC also accepts a non-traditional down payment, such as an unsecured personal loan or line of credit. It must be independent of the purchase or sale of the property, is only allowed for 1 or 2 units with a loan-to-value ratio from 90.01% to 95% and for borrowers with a strong credit history, and the premium then rises to 4.50%. Borrowing your down payment adds a debt to repay on top of the mortgage: run the numbers first. Your lender may ask for proof of where the funds come from (account statements or a gift letter, for example): ask them which documents they need.

Two federal plans can be used for a first home: • The Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSPs, according to the CRA. For a first withdrawal made between January 1, 2026 and December 31, 2028, the 15-year repayment period starts in the fifth year after the withdrawal: a first withdrawal in 2026 means a first repayment year of 2031. • The tax-free first home savings account (FHSA). According to the CRA, you can use the HBP and make a qualifying FHSA withdrawal for the same home, as long as you meet all the conditions at the time of each withdrawal. To compare the two, see FHSA vs HBP in 2026: which one to choose?.

The down payment is not the only amount you need on hand. You also need to plan for property transfer duties (the "welcome tax"; see Montreal welcome tax in 2026 and our welcome tax calculator), the tax on the insurance premium if applicable, notary fees, the inspection and moving. Ask your lender whether you must show that you can cover these costs in addition to the down payment.