How Much is a Down Payment for a Condo? — Minimum Costs to Buy Your Dream Home

Preparing to purchase new property is something to be celebrated. However, not many of us have millions of dollars lying around, which is what a condo can cost in Ontario. Thankfully, our team has put together a guide for down payments for a condo so you aren’t underprepared and unable to afford your new home.

How Much Does a Down Payment for a Condo Cost?

Typically, a down payment for condos in Toronto can be as low as 5%, but that is only for condos around the half a million mark. The rules change a bit when you pass that threshold to places that cost a million. You will then require a 5% minimum needed for the first half million and another 10% minimum is tacked on for the remaining amount. 

For condo properties in North York that are priced higher than a million, which can be quite common, the minimum down payment is 20%.

Why is a Downpayment Needed for a Condo Purchase?

While a down payment can seem like a burden to buyers, it is necessary to ensure the security for lenders, as it reduces the risks they take on. Lenders and banks rely on the money you put down as a guarantee you won’t default on your loan.

Down Payment Estimate Costs

The down payment required is up to how much you can afford, which 5% being the very minimum on condos priced at half a million or lower. Keep in mind that the more down payment you put down, the less you will need to borrow from the lender, which means less interest and possibly a lower mortgage.

If math isn’t your strong suit, our experts have given you an example below.

If your condo in Mississauga costs half a million or below, your minimum down payment should be around 25K if it is closer to the high end. For those priced at around a million, prepare 25K for the first half, and the rest will require about 50K because the percentage is increased to 10.

Lastly, for condos priced at a million or over, you need 20% down, which will be around 200K. 

Source and Support for Down Payment

Securing a down payment for a condo in Etobicoke can be a difficult task, thankfully, there are a few ways to prepare for the big purchase. Our team has identified the best ways to source a down payment.


It’s never too early to plan for your first purchase. You can secure a down payment the old-fashioned way by saving. However, living costs in Toronto and many other major cities in Canada are staggering, so it could take you a while. 


Using your own savings, you reduce the risks of not being able to pay back loans and take a lot of pressure off of yourself.

Family or Friends

If saving takes too long or you’re not getting to the amount fast enough before your dream condo is off the market, you can always turn to family and friends. It can be difficult to land a hefty amount and you will be required to pay back your family or friends as well as the mortgage lender.

Home Buyers’ Plan

There is also something called a Home Buyer’s Plan, which can assist those making a sizeable down payment on their condo. The Home Buyer’s Plan essentially comes from you, more specifically, from your RRSP [1] savings account. This sum is reserved for retirement, and you will usually be taxed a large amount for withdrawal.

However, if you are withdrawing from the fund to purchase your home, you can be awarded up to 25K, or the first 5% of the minimum required down completely tax-free.

Our experts will warn against this if you have no ability to pay the amount back, or if you have no plans for your retirement fund.

Mortgage Loan Insurance

Of course, you can always go the old-fashioned route and go with a mortgage. The lender will most likely request mortgage loan insurance to reduce the risk for them. You won’t have a choice in mortgage loan insurance if you do not pony up at least 20% of the down payment for any condo.

mortage loan insurance

Shared Ownership

Our team says there is also an option to share ownership of the condo, meaning another name on the deed that will share in the same responsibilities you have to pay the mortgage and down payment. This can significantly decrease the amount you are responsible for.

Tips and Reminders Before Giving Your Down Payment

Our mortgage experts have a few tips before you give your down payment. Run a credit check for yourself before deciding on the down payment amount and mortgage loan. This way, you will know if you are eligible for a lower interest or a larger sum.

Do your due diligence on the mortgage lender. Are they reputable? Are they lenient? Questions such as these are good ones to ask.

Lastly, never get yourself into a situation you cannot handle. Know your limits and do not commit to a mortgage agreement you cannot payback.

More reading: Apps ideal for real estate agents 


How much is the downpayment for a condo?

The down payment for a condo is 5% minimum. This only applies to condos priced below 500k. If your condo is worth around the 1M mark, then the 5% applies only to the first half, and you will need to pay 10% on the remaining amount. For condos priced over 1M, you will need to prepare at least a 20% down.

Can you buy a condo with 5% down?

Yes, you can buy a condo in Canada with 5% down, but only ones that are priced at 500K. You can put a down of 5% for condos from 500K to 1M, but be prepared to pay a 10% down for the remaining amount.


Putting a down payment for a condo can be very daunting. The figures can be astronomical, especially if you are planning on purchasing a pricey property. Our experts remind you to find the best course of action for your circumstances and not to overcommit to something that can cause you problems down the line.

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Tal Shelef
Tal Shelef is a know it all when it comes to pre-construction developments Canada Wide. His years of daily research and growing up on construction sites / seeing development sites grow from the ground up at an early age gave him a passion like no other. He uses his knowledge to educate Condowizard’s clients. Have a conversation with Tal and see how much value one phone call may provide you.

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