Many first-time homebuyers in Vancouver wonder if they need a massive 20% down payment to enter the BC real estate market. Thanks to recent federal changes to the insured mortgage cap, buying a home in the Lower Mainland is now more accessible than it has been in years.

In Canada, the minimum down payment depends on the purchase price. As of late 2024, the cap for insured mortgages (loans with less than 20% down) increased to $1.5 million. This is a game-changer for Vancouver, where many starter homes and townhomes fall between $1M and $1.5M. You no longer automatically need 20% down for these properties.

The current minimum down payment is calculated as follows:

5% on the first $500,000 of the purchase price.

10% on the portion between $500,000 and $1.5 million.

For a $1.2 million Vancouver condo or townhouse, your minimum down payment is now $95,000 (instead of the old $240,000 requirement). Keep in mind that if you put down less than 20%, you’ll pay mortgage default insurance (CMHC insurance), which is rolled into your mortgage. For any home over $1.5 million, a full 20% down payment is still required.

Navigating BC mortgage rules can be tricky, but you don’t have to do it alone. As an independent mortgage broker, I can help you calculate your exact costs and find the best rates available in British Columbia today.

Minimum Down Payment Rules (Official Table):

CMHC Mortgage Insurance Calculator

BC First-Time Home Buyers’ Program (Tax Exemptions):

Book a free consultation with me!