By Jarrett Hunter, Realtor® | RE/MAX Your Community Realty

If you’re thinking about buying a condo in Toronto, one of your first questions is probably how much money you’ll need for a down payment.

Many buyers assume they need 20% of the purchase price before they can buy. That’s not always the case. Depending on the purchase price, your financial circumstances and mortgage eligibility, you may qualify to purchase a Toronto condo with considerably less.

However, your down payment is only part of the equation. You’ll also need to qualify for financing and budget for closing costs, condominium maintenance fees and other ownership expenses.

What Is the Minimum Down Payment in Canada in 2026?

Under Canada’s current mortgage rules, the minimum down payment for an eligible owner-occupied home generally depends on the purchase price:

For properties priced at $500,000 or less: The minimum down payment is 5% of the purchase price.

For properties priced above $500,000 but below $1.5 million: The minimum is 5% of the first $500,000, plus 10% of the portion above $500,000.

For properties priced at $1.5 million or more: A minimum down payment of 20% is generally required.

These are minimum requirements. Depending on your income, credit history, mortgage qualifications or the property’s intended use, a lender may require a larger down payment.

Source: Financial Consumer Agency of Canada — How Much You Need for a Down Payment

Toronto Condo Down Payment Examples

Here are some examples of the minimum down payment for an eligible owner-occupied Toronto condo at different purchase prices.

These examples assume the standard minimum down payment rules for eligible owner-occupied purchases. The $1.5 million example uses the 20% requirement applicable at that price. Mortgage eligibility and other lender requirements still apply.

The important point is that the minimum down payment does not increase at a single flat percentage across all purchase prices below $1.5 million.

For instance, the minimum down payment on a $700,000 condo is $45,000, not $70,000 or $140,000.

That distinction can make homeownership more accessible to buyers who have sufficient income to qualify for a mortgage but haven’t accumulated a 20% down payment.

Do You Need 20% Down to Buy a Toronto Condo?

Not necessarily. For an eligible owner-occupied condo priced below $1.5 million, a down payment of less than 20% may be possible.

However, when your down payment is less than 20%, mortgage default insurance is generally required.

This insurance protects the mortgage lender if the borrower defaults. It doesn’t protect the buyer against financial losses or missed mortgage payments.

The mortgage insurance premium depends on factors including the mortgage amount, loan-to-value ratio and mortgage product. In many cases, the premium can be added to the mortgage balance, increasing the amount borrowed and the interest paid over time.

Ontario also charges provincial sales tax on mortgage default insurance premiums. That tax cannot simply be added to the insured mortgage and must be budgeted for separately.

Putting 20% down generally allows an eligible buyer to avoid the mortgage default insurance premium. But a larger down payment also means using more of your available savings.

The right choice depends on your mortgage terms, savings, cash flow and other financial priorities.

Source: Canada Mortgage and Housing Corporation — Mortgage Loan Insurance

What’s the Difference Between Your Deposit and Down Payment?

This is an important distinction that sometimes confuses first-time Toronto condo buyers.

When you make an offer to purchase a resale condo, the agreement typically specifies a deposit. The deposit demonstrates your commitment to the transaction and is held according to the agreement’s terms, often in a real estate brokerage’s trust account.

Your down payment is the total amount of your own funds being contributed toward the purchase price.

The deposit normally forms part of that down payment. It isn’t an additional amount on top of it.

For example, if you’re purchasing a $700,000 condo with a $45,000 down payment and the accepted agreement requires a $20,000 deposit, that deposit counts toward your down payment.

You would then need the remaining $25,000 toward your down payment at closing, along with sufficient money for closing costs and adjustments.

The amount and timing of a deposit are matters addressed in the agreement of purchase and sale. A 5% deposit is not a universal legal requirement for every Toronto real estate transaction.

For pre-construction condos, deposit arrangements can be substantially different, with payments often scheduled over an extended period under the builder’s contract.

Does Having the Minimum Down Payment Mean You’ll Qualify for a Mortgage?

No. Having the required down payment doesn’t automatically mean a lender will approve the mortgage.

Lenders also consider your income, existing debt, credit history, employment circumstances and ability to make mortgage payments.

For Toronto condominium buyers, monthly maintenance fees are another important consideration.

Even if the condo purchase price fits your budget, higher maintenance fees can affect mortgage qualification and your actual monthly ownership costs.

For CMHC-insured mortgage qualification, 50% of applicable condominium fees is included in the relevant debt-service calculations. Your lender or mortgage broker can explain how these requirements apply to your situation.

I generally recommend obtaining a mortgage pre-approval before beginning your search so that you have a clearer understanding of your purchasing power.

Source: CMHC — Calculating Mortgage Debt Service Ratios

Don’t Forget About Toronto Condo Closing Costs

Your down payment is not the only cash you’ll need to complete your condo purchase.

Toronto buyers must also consider both Ontario land transfer tax and Toronto municipal land transfer tax, together with legal fees, title insurance and applicable closing adjustments.

If mortgage default insurance is required, the provincial sales tax on the insurance premium may also need to be paid at closing.

Depending on the circumstances, additional costs may apply. For a pre-construction condo, builder adjustments, interim occupancy arrangements and HST considerations can make the calculation more complicated.

Eligible first-time buyers may qualify for provincial and municipal land transfer tax refunds, which can help reduce their cash requirements.

I recommend calculating your full purchasing budget before making an offer, rather than committing all your available savings to the down payment.

Can First-Time Buyers Use Their FHSA or RRSP Savings?

Yes, qualifying first-time homebuyers may be able to use government-supported savings programs when purchasing their Toronto condo.

The First Home Savings Account (FHSA) offers eligible buyers tax advantages when saving for a qualifying home. The regular annual contribution room is $8,000, with a lifetime contribution limit of $40,000, subject to the program’s rules.

The federal Home Buyers’ Plan also allows eligible individuals to withdraw up to $60,000 from their RRSPs toward a qualifying home purchase, subject to repayment and other requirements.

Eligible buyers can use qualifying FHSA withdrawals and the Home Buyers’ Plan for the same purchase, provided they meet the applicable conditions.

These programs can be valuable, but qualification, contribution timing and withdrawal requirements matter. I recommend discussing the options with your mortgage professional and financial or tax adviser before withdrawing funds.

Sources: CRA — First Home Savings Account and CRA — Home Buyers’ Plan

What If You’re Buying a Toronto Condo as an Investment?

The minimum down payment examples earlier in this article are intended for eligible owner-occupied purchases.

If you’re buying a condominium strictly as a rental investment, different financing and down payment requirements may apply.

Many non-owner-occupied investment property mortgages require at least 20% down, although lender policies and available mortgage programs vary.

Rental income, existing debts, the property’s carrying costs and other lending requirements can also affect qualification.

Before purchasing a Toronto investment condo, I recommend reviewing the expected rent, maintenance fees, property taxes, financing expenses and potential vacancy costs.

For more information about buying and leasing Toronto investment properties, visit my Toronto Landlord Resource Centre.

My Advice to Toronto Condo Buyers

After more than 25 years working in Toronto real estate, one thing I encourage buyers to do is establish a realistic budget before they become emotionally attached to a particular property.

Don’t assume you need 20% down without discussing your mortgage options. At the same time, don’t focus exclusively on the minimum down payment and overlook the total cost of purchasing and owning a condominium.

When I help buyers evaluate a Toronto condo, I look at the purchase price, monthly carrying costs, comparable sales, building condition and long-term resale considerations.

The objective is not simply to find a property that a lender will finance. It’s to help you make a purchase that fits your needs, financial circumstances and future plans.

Frequently Asked Questions About Toronto Condo Down Payments

Can I buy a Toronto condo with 5% down?

Possibly. For an eligible owner-occupied condo priced at $500,000 or less, the minimum down payment is generally 5%. For qualifying purchases above $500,000 and below $1.5 million, the required minimum is calculated using two tiers.

How much down payment do I need for a $600,000 Toronto condo?

For an eligible owner-occupied purchase, the minimum down payment is $35,000: $25,000 on the first $500,000 and $10,000 on the remaining $100,000.

How much down payment do I need for a $700,000 Toronto condo?

The minimum down payment for an eligible owner-occupied $700,000 condo is $45,000. Mortgage approval, insurance and additional closing expenses must still be considered.

Can I use a gifted down payment?

Some mortgage programs accept qualifying non-repayable gifts from eligible family members. Lenders may require documentation confirming the source and nature of the funds. Ask your mortgage professional about the requirements.

Is the deposit included in my condo down payment?

Yes. The deposit paid under the agreement of purchase and sale is normally credited toward your overall down payment and purchase price when the transaction closes.

Do condo maintenance fees affect mortgage approval?

They can. Lenders consider condominium fees when calculating housing affordability. For CMHC-insured mortgages, 50% of applicable condo fees is included in the debt-service calculations.

Does a pre-construction condo require a different down payment?

Pre-construction purchases often have deposit schedules established by the builder, and the mortgage financing arrangements may be different from a standard resale purchase. Review the agreement and confirm your financing plan before committing.

Jarrett Hunter, Realtor® | RE/MAX Your Community Realty | Toronto, Ontario

Mortgage rules, insurance requirements and financial programs are subject to change. This article is general information, not a mortgage approval or personalized financial advice. Confirm current requirements with your lender or qualified mortgage professional.