Calculator
Minimum down payment calculator
See the legal minimum down payment at your price, with the math shown. Then see how long it will take to save the gap, and what reaching 20% would save you.
Your numbers
Edmonton's average residential sale is around $470,000. That's under $500,000, so the 5% minimum applies to the whole price.
What goes into the account each month.
Advanced options(6)
Other sources
$8,000 a year and $40,000 lifetime, per buyer. We cap it at the legal limit and tell you if we do.
Up to $60,000 per person, repayable over 15 years.
You'll need a gift letter. A gift from someone outside your immediate family may count as a non-traditional down payment.
Doubles the FHSA and Home Buyers' Plan limits.
Assumptions
An effective annual return. 3% assumes cash and GICs. Much higher than that assumes market investments, which carry market risk.
Rate taken from the RateLens published table, current as of September 21, 2026 at 9:00 a.m. MT. Rules, premium tiers and fee schedules current as of September 16, 2026.
Your minimum down payment
$23,500
$470,000 is under $500,000, so the minimum is a flat 5%.
- You have
- $30,000Cash saved
- Above the minimum by
- $6,500You clear the statutory minimum
- 20% down would be
- $94,000$64,000 more than you have
- Premium saved at 20%
- $17,600What reaching 20% takes off your mortgage
How your minimum is calculated
The statutory minimum is 5% of the first $500,000 and 10% of anything between $500,000 and $1.5 million. At $1.5 million and above, it's 20%, because default insurance isn't available at that price.
| 5% of the purchase price5% of $470,000 | $23,500 |
|---|---|
| Minimum down payment | $23,500 |
You have the minimum
You have enough to buy. Next, decide whether 20% down is worth waiting for.
You clear the minimum today
- Ladder
- 5% / 10% / 20%
- Insured price cap
- $1,500,000
- Return
- 3.00% effective
- Rules as of
- September 16, 2026
Alberta has no land transfer tax
Where the money comes from
Each registered account has a legal limit. If you enter more than the limit, we use the limit.
| Cash savings | $30,000 |
|---|---|
| Total available | $30,000 |
Premium at each down payment level
The premium is a percentage of the mortgage, set by your loan-to-value band. It's added to your mortgage, so you don't pay it in cash.
| Down payment | Amount | Premium rate | Premium |
|---|---|---|---|
| 5%You | $23,500 | 4.00% | $17,860 |
| 10% | $47,000 | 3.10% | $13,113 |
| 15% | $70,500 | 2.80% | $11,186 |
| 20% | $94,000 | 0.00% | None |
The statutory minimum lets you buy. 20% down removes the premium and gets you uninsured pricing. The first bar is what you have today.
- You have today$30,000
- Statutory minimum$23,500
- 20% (no premium)$94,000
| Jurisdiction | Down payment |
|---|---|
| You have today | $30,000 |
| Statutory minimum | $23,500 |
| 20% (no premium) | $94,000 |
Should you wait for 20% down?
Sometimes the premium costs less than another 2 years of rent and price growth, and sometimes it doesn’t. In Alberta, it depends on the part of the market you’re buying in. Daniel can walk you through it in a 15-minute call.
Talk it throughMinimum down payment
$23,500
How this is calculated
Every figure on this page comes from one tested calculation engine. Here’s what it does.
How the minimum is worked out
The minimum down payment in Canada uses 3 percentages:
- 5% of the first $500,000
- 10% of the portion from $500,000 to $1,499,999
- 20% at $1,500,000 or more, because mortgage default insurance isn’t available at that price
At Edmonton’s average price, only the first band applies. $470,000 is under $500,000, so the minimum is a flat 5%. On an $850,000 home, the second band applies too: 5% of the first $500,000 plus 10% of the remaining $350,000.
What changes at 20% down
Below 20% down, mortgage default insurance is required. The premium is a percentage of the mortgage, set by your loan-to-value band: 4.00% under 10% down, 3.10% from 10% and 2.80% from 15%. It’s added to your mortgage, so you don’t pay it in cash. At 20% down, there’s no premium.
That doesn’t mean waiting for 20% is always right. Insured mortgages are often priced lower than uninsured ones, because the lender carries less risk. Compare the premium and the rate difference with another year or two of rent and price changes. It can go either way. See the premium at each level.
How the savings timeline works
The projection compounds your existing balance and each month’s contribution at the return you set, applied at the end of each month. The rate is treated as an effective annual return, so 3% compounds to 3% over a year, not 3.04%.
If you add nothing each month, the calculator says “never at this rate” instead of projecting a 1,200-month plan.
FHSA, HBP and gifts
The First Home Savings Account holds $8,000 a year to a $40,000 lifetime limit, per person. The Home Buyers’ Plan lets you withdraw up to $60,000 per person from an RRSP, repayable over 15 years. Both double with 2 buyers. The calculator caps both at their legal limits, so an entry over the limit won’t inflate your total.
A gift always needs a signed gift letter confirming you don’t have to pay it back. Borrowed funds, or a gift from someone outside your immediate family, count as a non-traditional down payment. That means a 4.50% premium instead of 4.00%, but only in the 90.01–95% loan-to-value band. Below that, it makes no difference.
Closing costs in Alberta
You’ll need closing costs on top of your down payment, but Alberta has no land transfer tax. Instead, you pay Land Titles registration fees: $50 plus $5 for every $5,000 of value on the transfer, and the same formula again on the mortgage.
Common questions
What is the minimum down payment in Canada?
You need 5% of the first $500,000 and 10% of the part between $500,000 and $1.5 million. Homes at $1.5 million or more need 20% down, because that’s the ceiling for mortgage default insurance.
On a $470,000 Edmonton home, the minimum is a flat 5%, or $23,500.
Should I wait until I have 20%?
Not always. It depends on your market.
20% down removes the premium, but insured mortgages are often priced lower than uninsured ones, because the lender carries less risk. Part of the premium comes back to you as a better rate.
Compare the premium and the rate difference with another year or two of rent and whatever prices do in the meantime. In a flat market, waiting often wins. In a rising market, it usually doesn’t.
Can my down payment be a gift?
Yes, and it’s common.
You’ll need a signed gift letter confirming the money is a gift you don’t have to repay. The funds generally need to be in your account before closing. A gift from an immediate family member counts as a traditional down payment.
Borrowed funds, or a gift from someone outside your immediate family, count as non-traditional. They carry a 4.50% premium instead of 4.00%, but only above 90% loan-to-value. Below that, it makes no difference.
Does the FHSA or the Home Buyers' Plan count as my down payment?
Yes. You can use both on the same purchase.
The FHSA allows $8,000 a year, up to a $40,000 lifetime limit per person. Contributions are tax-deductible, and withdrawals for a qualifying purchase are tax-free. The Home Buyers’ Plan lets you take up to $60,000 per person out of an RRSP, repayable over 15 years.
With 2 buyers, both limits double, for about $200,000 of tax-advantaged room between you. Turn on “Two buyers” in the advanced panel to update the limits.
How much do I need beyond the down payment?
An insured lender wants proof that you have 1.5% of the purchase price for closing costs, on top of your down payment.
In Alberta, the bill is usually at the low end of the national range, because there’s no land transfer tax and no provincial sales tax on the premium. Budget for legal fees, title insurance, a Real Property Report with its municipal compliance stamp and the Land Titles registration fees.
What to work out next
- CMHC insurance premiumPrice the premium for your down payment band, and the PST in other provinces.
- AffordabilityWhat price this down payment supports once your income and debts are included.
- Closing costsThe other cash you need on closing day, itemized for Alberta.
- First-time buyer plannerAdd up the FHSA, HBP, tax credit and GST rebate in the right order.
- Mortgage paymentWhat the rest of the price costs each month as a mortgage.
- Rent vs buyWhether renting while you save costs less than buying sooner.
This calculator provides estimates only. Results are based on the information you enter and on assumptions that may not reflect your actual qualification, rate or costs. These include semi-annual, not-in-advance compounding for fixed rates, as required under section 6 of the federal Interest Act, and the mortgage default insurance premium tiers published by CMHC, Sagen and Canada Guaranty. It is not mortgage advice, a quote, a rate hold, a pre-approval or an offer of credit, and RateLens does not guarantee its accuracy or completeness. Your actual rate, payment, default insurance premium and closing costs will depend on your credit profile, income, the property, the lender’s current rates and policies, and other factors confirmed during a full application.
Premiums shown approximate the published premium schedules of CMHC, Sagen and Canada Guaranty and are subject to each insurer’s current rate sheet. They are not guaranteed by RateLens. No provincial sales tax applies to the premium in Alberta. In Ontario, Quebec, Saskatchewan and Manitoba, PST on the premium is payable in cash at closing and cannot be added to the mortgage. Default insurance is not available on properties priced at or above $1,500,000.
Rules snapshot: September 16, 2026. Rates shown are calculation assumptions, not confirmed offers. Speak with Daniel De Sousa, Mortgage Associate, for a personalized quote. Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage, a licensed mortgage brokerage licensed by RECA.
Daniel De Sousa, Mortgage Associate, is licensed by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage is a mortgage brokerage licensed by the Real Estate Council of Alberta (RECA). Verify our licence on RECA ProCheck(opens in a new tab)
RateLens is a trade name used by Daniel De Sousa, Mortgage Associate, licensed in Alberta by the Real Estate Council of Alberta and registered with Indi The Independent Mortgage Company Ltd. o/a Indi Mortgage.
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