Minimum Down Payment to Buy a Home in British Columbia

If you are a first-time buyer in British Columbia, the first question is usually how much cash you need to bring. The answer depends on the purchase price, whether you will live in the home, and what your lender and insurer accept.

The minimums below are federal rules that apply across Canada, including British Columbia. Your lender may ask for more, so treat them as a starting point.

This article covers the law of British Columbia.

The tiered minimum by price

The minimum is not a single percentage. It is built in tiers, with a lower rate on the first part of the price and a higher rate on the rest.

As a worked example, on a $1 million home that is 5% of $500,000 ($25,000) plus 10% of $500,000 ($50,000), for a $75,000 minimum, but only if the lender and insurer accept it.

The insured mortgage price cap rose from $1 million to $1.5 million effective December 15, 2024, so homes under $1.5 million can now be bought with less than 20% down using default insurance. Mortgage insurance is not available on homes priced at $1.5 million or more, so a buyer at that level needs 20% down and an uninsured mortgage. Some older pages still show a $1 million figure, so check with your lender.

Why less than 20% means insurance

Mortgage loan insurance is typically needed if your down payment is less than 20% of the purchase price. It protects the lender if you cannot make payments. The lender pays the premium but likely passes the cost to you, and you can pay a lump sum or add it to the mortgage.

For CMHC homeowner loans, the premium is a percentage of the total loan and depends on the loan-to-value ratio. For example, it is 4.00% for a loan between 90.01% and 95% of the home's value, and 2.40% between 75.01% and 80%. Premiums are a one-time charge that may be added to the insured loan.

A lender may require insurance even if you put 20% down, usually if you are self-employed or have a poor credit history.

The maximum amortization for insured purchase loans is 25 years, with 30 years available through CMHC Home Start. Since December 15, 2024, 30-year amortizations are available to all first-time home buyers and all buyers of new builds.

Owner-occupied homes

CMHC's homeowner rule for 1 to 2 unit homes is 5% of the first $500,000 of lending value plus 10% of the remainder, with a maximum 95% loan-to-value. For 3 to 4 unit homes the minimum is 10%, with a maximum 90% loan-to-value. The home must be intended for homeowner occupancy and the price or lending value must be below $1,500,000.

Normally the minimum down payment must come from your own funds. CMHC lets some 1 to 2 unit borrowers with a strong credit history use a non-traditional down payment, such as an unsecured personal loan or line of credit, at 90.01% to 95% loan-to-value. That option carries a higher premium of 4.50%.

Rental and investment properties

Rental and investment properties are not eligible for CMHC's 5%-down homeowner product. CMHC's FAQ gives a maximum purchase price or lending value of $1,000,000 for small rental loans, compared with $1,500,000 for homeowner loans.

The equity you need for a rental purchase depends on the lender and the property, so confirm it with the lender or CMHC before you make an offer. If you plan to rent out part of the home or buy as an investment, tell your lender early, since it changes which products are open to you.

What to do next

Many buyers ask a lender for a pre-approval first. Lenders review your assets, income and debt to estimate the most they might lend and at what rate, but this does not guarantee approval, and the rate can be locked for 60 to 130 days depending on the lender. A pre-approved amount is a ceiling, not a commitment, and the lender can still refuse after pre-approval.

• Work out the purchase price range you are considering and apply the tiers above.
• Confirm that your down payment comes from your own funds, or ask about the non-traditional option if you qualify.
• Ask your lender whether insurance applies and what the premium would be.
• Budget separately for closing costs, since lenders ask for proof of both your down payment and closing costs.
• Have a lawyer review your purchase contract before you remove financing conditions.

Frequently asked questions