Minimum Down Payment for a Home in British Columbia: 5%, 10%, 20%

If you are shopping for a home in British Columbia, one of the first questions is how much cash you need on closing. The answer is not a single percentage. Federal rules use a sliding scale that depends on the purchase price, and your lender can ask for more.

This article walks through the tiers, shows a worked example, explains the insured price cap and looks at what changes if you plan to rent the property out. Your own numbers will depend on your lender and your situation, so treat this as a map rather than a quote.

This article covers the law of British Columbia.

How the tiered minimum works

The minimum is calculated in slices of the price rather than as one flat rate. For a price of $500,000 or less, you need 5% of the price. For a price between $500,000 and $1.5 million, you need 5% of the first $500,000 plus 10% of the amount above $500,000. For a price of $1.5 million or more, you need 20% of the whole purchase price.

A worked example

Take a $1 million home. You need 5% of the first $500,000, which is $25,000, plus 10% of the other $500,000, which is $50,000. That makes a minimum of $75,000.

That figure is a floor, and it only works if the lender and the insurer accept your application. A lender can set stricter terms, so the amount you actually need may be higher.

Why 20% still matters: the insured price cap

Mortgage loan insurance is typically needed when your down payment is less than 20% of the price. The cap on insured mortgages rose from $1 million to $1.5 million effective December 15, 2024, so homes under $1.5 million can be bought with less than 20% down using default insurance.

At $1.5 million or more, insurance is not available, so a buyer needs 20% down and an uninsured mortgage. Some consumer pages still show the older $1 million wording, so if your price falls between $1 million and $1.5 million, confirm the current position with your lender.

There is also an exception in the other direction. A lender may require insurance even when you put down 20%, usually if you are self-employed or have a poor credit history.

Rental and investment properties

The 5% tier is aimed at homebuyers who will live in the property. CMHC's homeowner loans require that the home be intended for owner occupancy. Rental and investment properties are not eligible for CMHC's 5%-down homeowner product.

• Small rental loans have a different price ceiling: CMHC's maximum purchase price or lending value is $1,000,000, compared with $1,500,000 for homeowner loans.
• For 1 to 2 unit owner-occupied homes, the minimum 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 owner-occupied homes, the minimum is 10%, with a maximum 90% loan-to-value.
• The equity needed for a pure rental purchase should be confirmed with your lender or CMHC before you make an offer.

Where the money has to come from, and what to do next

Normally, the minimum down payment must come from your own funds. CMHC makes an exception for some 1 to 2 unit borrowers with a strong credit history, who may use a non-traditional source such as an unsecured personal loan or line of credit at 90.01% to 95% loan-to-value.

• Work out the tier your target price falls into and calculate the minimum.
• Add closing costs to your savings target, since lenders look for proof of both your down payment and closing costs.
• Ask a lender about pre-approval, keeping in mind it does not guarantee approval.
• If the property is a rental, ask the lender what equity they will require before you commit.
• Speak with a lawyer or your lender if your funds come from a gift, loan or a mix of sources.

Frequently asked questions