Do You Really Need 20% Down to Buy a Home in the GTA?

One of the most common myths in real estate is that you need a full 20% down payment to buy a home — especially in a market like the GTA. But the truth is: that’s simply not the case.

Here’s how it actually works in Ontario:

• You can buy with as little as 5% down on homes under $500,000.

• For homes between $500,000–$999,999, the minimum down is 5% on the first $500K and 10% on the remainder.

• Only homes priced at $1 million or more require a full 20% down — and they’re not eligible for mortgage insurance.

This means many buyers — especially first-time buyers — don’t need to wait years to save up 20%. Even in the GTA, there are plenty of properties (especially condos and townhomes) that fall within the lower tiers.

But there are trade-offs:

• If you put down less than 20%, you’ll need mortgage insurance (CMHC, Sagen, or Canada Guaranty).

• The insurance premium gets added to your mortgage.

• You’ll also need to pass the mortgage stress test, which means qualifying at a higher rate than your actual mortgage.

Bottom Line:

Don’t let the 20% myth stop you. Talk to a qualified mortgage advisor, get pre-approved, and see what’s actually possible. You might be a lot closer to buying than you think.

Need help planning your next move?

Contact Leggieri Realty Inc. for a No-Pressure Consultation.