How Much Down Payment Do You Need to Buy in BC? (2026)

The down payment is the single biggest hurdle for most BC buyers, and one of the most misunderstood. The rules are not a flat percentage; they are tiered by price, and crossing certain thresholds changes both what you must put down and what you pay to borrow. Once you understand the tiers, you can work out your exact minimum in about a minute.

The minimum down payment tiers

In Canada, the minimum down payment scales with the home's price:

• 5% on the first $500,000 of the price
• 10% on the portion between $500,000 and $1,000,000
• 20% on homes priced $1,500,000 and up

So the calculation is marginal, like a tax. On a $700,000 home:

• 5% of $500,000 = $25,000
• 10% of $200,000 = $20,000
• Minimum down payment = $45,000

On a home at $1,500,000 or more, you must put down at least 20% ($300,000 or more) because these homes cannot use mortgage default insurance at all.

Rather than doing this by hand for every price you consider, the mortgage and down payment calculator does it instantly and shows the resulting mortgage.

Key takeaway: The minimum is tiered: 5% on the first $500K, 10% up to $1M, and 20% at $1.5M+. Anything under 20% down is legal and common, but it adds mortgage insurance to your loan. Know both numbers before you shop.

What happens under 20% down: mortgage insurance

If you put down less than 20%, the law requires mortgage default insurance (from CMHC or a private insurer). It protects the lender if you default, but you pay for it: the premium is added to your mortgage balance and paid off over time.

The premium is a percentage of your loan, and it gets larger the smaller your down payment:

| Down payment | Insurance premium (approx.) | | --- | --- | | 5% - 9.99% | 4.00% of the loan | | 10% - 14.99% | 3.10% of the loan | | 15% - 19.99% | 2.80% of the loan | | 20% or more | None |

So a smaller down payment does not just mean a bigger mortgage, it means a bigger mortgage plus a larger insurance premium rolled on top. It still lets many buyers into the market years sooner, which is often the right call. Just go in with eyes open.

The 20% milestone

Reaching 20% down is meaningful because it eliminates the insurance premium entirely and can widen your lender options. But do not let "20 or nothing" trap you: for most first-time buyers, buying sooner with 5-10% down and paying the premium beats waiting years for prices to (maybe) cooperate. Run both scenarios and compare the real monthly cost.

Beyond the down payment: closing costs

The down payment is not the only cash you need at completion. Budget separately for closing costs, chiefly the BC Property Transfer Tax (see PTT explained), plus legal or notary fees and title insurance. First-time buyers may qualify for a PTT exemption that saves thousands. The closing costs calculator adds it all up.

Frequently asked questions

Can a gift from family count as my down payment? Usually yes. Lenders typically require a signed gift letter and proof of the funds. Confirm the exact requirements with your lender early.

Is a bigger down payment always better? It lowers your loan, your interest, and can remove insurance, but draining every dollar leaves nothing for closing costs, moving, or emergencies. Balance it.

What is the minimum on a $1,200,000 home? 5% of $500K ($25,000) + 10% of $500K ($50,000) + 10% of $200K ($20,000) = $95,000. Under 20%, so insurance applies. The calculator confirms it instantly.

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Want to know your exact minimum and monthly payment for a specific price? Talk to Phan: a bilingual Metro Vancouver REALTOR with Sutton Group West Coast who can run the numbers with you in Vietnamese or English before you talk to a lender.