What’s the Average Down Payment on a House in Ontario?
Feb 12, 2026 / Buying
Buying a house is undoubtedly exciting, but it’s also serious. Financially speaking, your next home could very well be the biggest purchase that you make in your lifetime. With a transaction this major, you’ll need to have a solid financial plan in place.
For home buyers in Ontario, one of the highest upfront costs is the down payment. The better (or larger) your down payment is, the further your budget will go in the market.
That being said, if you’ve never purchased a home before (or it’s been a while since you have), you may be unfamiliar with down payments, how they work, and how much money you need to make one. As local real estate agents, we’re here to help!
Keep reading to find out what the average down payment on a house in Ontario looks like, and what else you should know before you start house hunting.
What is a Down Payment?
Let’s start with the basics. What exactly is a down payment?
Unless you’re a lottery winner, you’ll need to take out a mortgage if you want to buy a house. That being said, your total loan amount won’t cover the full price of the home. Instead, you’ll need to pay for a small portion of the home in cash first. This is called your down payment.
After you make your down payment, you’ll slowly pay off the remaining balance of your home (covered by your mortgage) over time.
As a buyer, your down payment amount will play a major role in your house hunting journey. Not only will your potential down payment amount dictate what you can afford to spend on a house, but it will also impact how your offer appeals to sellers.
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Deposit vs. Down Payment
When you place an offer on a house, you’ll also need to submit a deposit. While a deposit is different from a down payment, some buyers can confuse these two costs.
In simple terms, a deposit is a one-time payment made by a buyer when their offer is conditionally accepted. Once the deal closes, the deposit goes towards the total purchase price.
Deposits are typically smaller, usually around 5% of the final price. However, like a down payment, a stronger deposit amount can make your offer more attractive.
How Much Do You Need for a Down Payment?
So, how much will you need for a down payment if you’re looking to buy a house? It depends.
Every buyer has different needs – and a different budget. As a result, your potential down payment amount will be unique to you and the type of house you’re looking to purchase. That’s why looking at the Ontario average isn’t always a helpful way to prepare for making a down payment.
Instead, you’ll need to find out what your minimum down payment requirements are based on what you’re looking for in a house.
What’s the Minimum Down Payment for a House in Ontario?
There is such a thing as a minimum down payment for a house in Ontario. However, it’s not a single, one-size-fits-all number.
Instead, down payment minimums follow a scale based on the final sale price of a house. Here’s how it breaks down:
Under $500,000
If the home’s final sale price is under $500,000, the minimum down payment is 5% of the purchase price.
$500,000 to $1,499,999
If a home’s final sale price is between $500,000 and $1,499,999, the minimum down payment is 5% on the first $500,000, then 10% of the remaining purchase amount.
Over $1,500,000
If a home sells for over $1,500,000, the minimum down payment is 20%.
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How to Know What You Can Afford
As a buyer, the strength of your down payment will directly influence the size and type of mortgage you qualify for. Which will eventually impact what you can afford to spend on a house.
One simple way to translate your down payment savings into a complete buying budget is by getting pre-approved for a mortgage. After you’ve determined the maximum amount of lending you qualify for, you’ll be able to house hunt with greater confidence.
Buy With Lino Arci Team
If you’re looking to buy a house, you’ll want to work with an experienced and knowledgeable real estate professional. That’s where we come in.
As Vaughan’s top real estate team, we’ve been helping local buyers for close to 40 years, and know what it takes to provide a seamless buying experience. Our proven buying process helps ensure that you secure your dream property – and for a great price.
Ready to buy a house? We can help! Call us at 416-571-2724 or email info@arciteam.com to get started.
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