How Much Down Payment Do I Need to Buy a Home in Brantford and Brant County?

If you’re thinking about buying a home in Brantford, Paris, St. George, or anywhere in Brant County, one of the first questions on your mind is probably this: “How much down payment do I actually need?”

The answer isn’t one-size-fits-all. Your minimum down payment depends on the purchase price of your home, your financial goals, and how you want to structure your mortgage. But the good news? Once you understand the rules, you can make a smart, confident choice that fits your budget.

Let’s break it down in plain language so you can plan your next move with clarity.

What’s the Minimum Down Payment to Buy a Home in Canada?

In Canada, the minimum down payment you need depends on how much the home costs. Here’s how it works:

For Homes Under $500,000

If the purchase price is less than $500,000, your minimum down payment is 5% of the home price. That means if you’re looking at a $400,000 home in Brantford, you’d need at least $20,000 to make a down payment.

For Homes Between $500,000 and $999,999

Things change a bit once you go above $500,000. For this price range, you’ll need:

5% on the first $500,000
10% on the amount above $500,000

So if you’re buying a $600,000 home in Paris, your minimum down payment would be $25,000 (5% of $500,000) plus $10,000 (10% of $100,000) = $35,000 total.

For Homes $1 Million or More

If the home price is $1 million or higher, you’ll need to put down at least 20%. This is called a conventional mortgage, and it means no mortgage default insurance is required.

What Is Mortgage Default Insurance (and When Do You Need It)?

Here’s something many first-time home buyers don’t realize: if your down payment is less than 20% of the purchase price, you’ll need to pay for mortgage default insurance. This is also called mortgage loan insurance, and it protects the mortgage lender if you default on your mortgage.

Mortgage default insurance is provided by three companies in Canada:

Canada Mortgage and Housing Corporation (CMHC)
Sagen (formerly Genworth Canada)
Canada Guaranty

The insurance premium is based on the size of your down payment. A smaller down payment means a higher insurance cost. For example:

If you put down 5%, the insurance premium is 4.00% of your mortgage amount
If you put down 10–14.99%, it drops to 3.10%
If you put down 15–19.99%, it’s 2.80%

This mortgage loan insurance premium is usually added to your total mortgage amount, which means it’s rolled into your mortgage payments over time. It’s not something you pay upfront in cash.

The higher your down payment, the lower your insurance cost — and the lower your overall mortgage. That’s one reason why a larger down payment can give you financial breathing room down the road.

How Does Your Down Payment Affect Your Mortgage?

Your down payment isn’t just about meeting the minimum. It has a direct impact on your monthly mortgage payments, the amount of your mortgage, and even your ability to qualify for a mortgage loan in the first place.

Lower Mortgage Amount = Lower Monthly Payments

When you make a larger down payment, you borrow less. That means your mortgage amount is smaller, which reduces your monthly payment. Over the life of a 25-year mortgage, this can save you thousands of dollars in interest.

Let’s say you’re buying a $450,000 home in Brantford. If you put down the minimum down payment of 5% ($22,500), your mortgage loan would be $427,500 — plus the mortgage insurance premium. But if you put down 20% ($90,000), your mortgage drops to $360,000 with no insurance required.

That difference between a down payment of 5% and 20% could save you over $400 per month, depending on your mortgage rate.

Bigger Down Payment = More Equity in Your Home

Equity is the part of your home that you actually own — it’s the difference between the home’s value and the amount you owe on your purchase mortgage. The more you put toward your down payment, the more equity you start with right away.

That equity matters if you ever want to refinance, borrow against your home, or sell. It also gives you a financial cushion if home values shift in the market.

Higher Down Payment = Easier Mortgage Qualification

Lenders look at your down payment as a sign of financial stability. A larger down payment reduces the size of your mortgage and lowers the lender’s risk, which can help you qualify — especially if you’re self-employed, have variable income, or are stretching your budget.

If you’re wondering how much mortgage you can afford, check out a mortgage affordability calculator from the Financial Consumer Agency of Canada. It’ll help you see how your income, debts, and down payment all work together.

Where Can You Get Money for Your Down Payment?

Saving for a down payment takes time — but there are a few strategies that can help you get there faster. Here are some of the most common ways home buyers in Brantford and Brant County pull together the funds for their down payment:

1. Save Over Time

The most straightforward way to save for your down payment is to set aside money each month. Many first-time buyers start by cutting back on expenses, setting up automatic transfers to a savings account, and staying focused on their home buying goal.

2. Use the First Home Savings Account (FHSA)

The First Home Savings Account is a newer tool designed to help first-time home buyers save. You can contribute up to $8,000 per year (lifetime max of $40,000), and both your contributions and investment growth are tax-free when you use them to buy your first home.

If you’re planning to buy in the next few years, this is one of the smartest places to save.

3. Tap Into Your RRSP with the Home Buyers’ Plan

The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their RRSP ($120,000 for couples) to put toward a down payment, tax-free. You’ll need to pay it back over 15 years, but it can be a great way to boost your down payment without draining your savings account.

4. Gift from Family

Many first-time homebuyers get help from family. If a parent or close relative wants to contribute part of your down payment, most mortgage lenders will accept it as long as it’s a true gift (not a loan). You’ll typically need a signed letter confirming the funds are a gift with no repayment expected.

5. Sell Assets or Use Savings

Some buyers choose to sell investments, a vehicle, or other assets to fund their home purchase. Just make sure you talk to a mortgage specialist or financial advisor first, so you understand any tax implications.

Should You Put Down More Than the Minimum?

Just because you can buy a home with a 5% down payment doesn’t mean you always should. Here’s when it might make sense to save up and put down more:

When a Larger Down Payment Reduces Your Costs

If putting down 20% or more helps you avoid mortgage insurance, that could save you thousands. On a $400,000 home, the mortgage default insurance premium on a 5% down payment would be around $16,000. That’s money you could save just by waiting a bit longer or adjusting your budget.

When You Want Lower Monthly Payments

A lower mortgage loan means you’ll have more breathing room each month. If you’re balancing daycare costs, vehicle payments, or other family expenses, a smaller monthly payment can reduce financial stress.

When You Want to Build Equity Faster

The more equity you have from the start, the more financial flexibility you’ll have later. Whether it’s renovating, refinancing, or selling in a few years, starting with more equity gives you options.

When a Lower Down Payment Makes Sense

That said, there are times when it’s smart to buy with a smaller down payment:

If you’re renting and your rent is close to what your mortgage payments would be
If home prices are rising quickly and waiting could price you out of the market
If you have other debts (like student loans or credit cards) that you want to tackle while you build equity

The key is to understand your full financial picture and talk to a mortgage professional who can help you weigh your options.

How Do Interest Rates Affect Your Down Payment Strategy?

Your down payment doesn’t exist in a vacuum — it works alongside your mortgage rate to determine your total cost. Interest rates have a big impact on home buyers in Brantford, especially when it comes to monthly affordability and long-term planning.

When rates are higher, a larger down payment can help offset the cost. When rates are lower, buyers often feel more comfortable with a smaller down payment because their mortgage payments are more manageable.

The important thing is to think about both your down payment and your mortgage payment together — not just one or the other.

What About Payment Requirements for Different Types of Homes?

Most of the rules we’ve talked about apply to traditional single-family homes. But if you’re buying a condo, townhouse, or multi-unit property, there are a few extra things to know:

Condos and townhomes: The same down payment rules apply, but lenders may have additional requirements around condo fees and reserve funds.
Multi-unit properties: If you’re buying a duplex or triplex and planning to live in one unit, you can still use a minimum down payment of 5% (on the first $500,000). But if it’s purely an investment property, you’ll need at least 20% down.

Next Steps: Get Clear on Your Numbers

Understanding the amount of down payment you need is just the beginning. The next step is to look at your full financial picture and figure out what makes sense for you and your family.

If you’re ready to start buying a home in Brantford or Brant County, here’s what I recommend:

Use a payment calculator. Play around with different down payment amounts and see how they affect your monthly costs.
Talk to a mortgage lender. Get pre-approved so you know exactly how much you can borrow and what your payment options look like.
Think about your timeline. Are you ready to buy now, or would waiting six months to save more make a difference?
Consider the total picture. Don’t just focus on the down payment — think about closing costs, moving expenses, and your monthly budget after you move in.

Final Thoughts

Buying your first home — or your next home — in Brantford, Paris, or anywhere in Brant County is a big step. The amount of your down payment plays a major role in how affordable your home purchase will be, both now and in the years ahead.

Whether you’re a first-time homebuyer working with the minimum down payment of 5% or a repeat buyer deciding how much to put down, the key is to understand your options and make a choice that aligns with your goals.

You don’t have to figure this out alone. With 15+ years of banking, mortgage, and financial planning experience, I help home buyers in Brantford and Brant County navigate these decisions with confidence. If you have questions about your down payment, your mortgage, or what you can afford, I’m here to walk you through it — step by step.

Ready to talk through your down payment strategy? Let’s connect.

How Much Down Payment to Buy a Home in Brantford? | 2026