Ontario mortgage help

Down payments and mortgage insurance in Ontario

The minimum down payment depends on the purchase price. When mortgage loan insurance is required, its premium may be added to the mortgage, but Ontario tax on the premium is normally paid in cash.

Reviewed August 31, 2026Published by Ontario Mortgage HelpHow we review

What to do first

  1. Calculate the minimum down payment for the purchase price and compare it with the cash available.

  2. Confirm whether the proposed purchase and amortization are eligible for mortgage loan insurance.

  3. Estimate the insurance premium, the total mortgage after the premium, and Ontario's tax on the premium.

  4. Document the source and history of the down payment before submitting an application.

Important considerations

Insurance protects the lenderMortgage loan insurance does not insure the borrower against missed payments or loss of income.

The premium increases the loanWhen added to the mortgage, the premium accrues mortgage interest. Ontario's provincial tax on the premium cannot be added to the insured loan.

Minimum does not mean sufficientThe lender and insurer still assess income, credit, debts, documentation, the property, and the source of the down payment.

Official sources

How much you need for a down paymentFinancial Consumer Agency of CanadaMortgage loan insurance premium calculatorCanada Mortgage and Housing CorporationRetail sales tax on insurance and benefits plansGovernment of Ontario

Related mortgage help

First-time home buyerPlan the down payment, taxes, closing costs, and financing.25- or 30-year amortizationCompare the monthly payment with long-term interest and equity.Mortgage pre-approvalUnderstand the budget, rate hold, documents, and limits.