What is the minimum down payment for owner-occupied properties with a purchase price below $500,000?

For owner-occupied properties with a purchase price below $500,000 in Canada, the minimum down payment required is 5%. This percentage is important due to the guidelines set by the Canada Mortgage and Housing Corporation (CMHC), which outlines the minimum down payment for various property price ranges. Specifically, for properties priced under $500,000, the down payment is allowed to be as low as 5%, making it easier for first-time homebuyers to enter the property market without needing to save a large sum for a down payment.

In contrast, for properties priced above $500,000, the rules change, and a minimum down payment of 5% on the first $500,000 is required, plus 10% on any amount exceeding that threshold. This progression in down payment requirements underscores the intent of making homeownership more accessible while also ensuring that buyers have a vested interest in their investment.