Monthly Down Payment Monitor: January 2025

Even when mortgage rates were at historic lows, you would have been left out of the feeding frenzy if your down payment savings fell short of the required minimums. That’s why NerdWallet developed this Monthly Down Payment Monitor: to help you understand how much you might need to save in order to get approved for a mortgage.

Unlike interest rates, your down payment is something you can control. Once you have an idea of how much to save, you can build a savings strategy around that target amount.

Every dollar you put away literally gets you closer to owning your own home.

Down payment requirements in Canada: January 2025

The information in the following table is based on Canada’s minimum down payment guidelines and the average sale prices for November 2024 provided by provincial real estate associations.

Province	Average Sale Price December 2024	Minimum Down Payment Required	20% Down Payment
B.C.	$1,013,556	$76,356	$202,711
Alberta	$493,828	$24,691	$98,766
Saskatchewan	$313,428	$15,671	$62,686
Manitoba	$360,233	$18,012	$72,047
Ontario	$834,123	$58,412	$166,825
Quebec	$510,884	$26,088	$102,177
New Brunswick	$319,390	$15,970	$63,878
Nova Scotia	$440,020	$22,001	$88,004
PEI	$404,741	$20,237	$80,948
Newfoundland	$329,346	$16,467	$65,869

Regional highlight: British Columbia

The B.C. housing market had a rollicking end to 2024. Home sales in December increased almost 25% year-over-year, while the average sale price rose by 5.6% over the same period.

Take a look below to see where the increased activity left down payment requirements in some of B.C.’s biggest markets at the end of December.

Real estate boards sometimes use different measurements when analyzing their data, like average price, median price and benchmark price. (We explain the differences below.) For now, just focus on those minimum down payment numbers.

Greater Vancouver

Benchmark detached home price: $1,997,000.
Minimum down payment required: $399,400.

Benchmark condo price: $749,900.
Minimum down payment required: $49,990.

Victoria

Benchmark detached home price: $1,306,400.
Minimum down payment required: $105,640.

Benchmark condo price: $547,800.
Minimum down payment required: $29,780.

Fraser Valley

Average detached sale price: $1,579,124.
Minimum down payment required: $315,825.

Average condo price: $539,069.
Minimum down payment required: $28,907.

Central Okanagan

Benchmark detached sale price: $1,023,700.
Minimum down payment required: $77,370.

Benchmark condo price: $475,500.
Minimum down payment required: $23,775.

Down payment savings tip: How a new lending rule might affect your mortgage

Canada’s antiquated insured mortgage limit received an update on December 15, when it increased from $1 million to $1.5 million. Properties priced below the $1.5 million threshold are now eligible for mortgage default insurance and no longer require minimum down payments of 20%.

That sounds great, but it might not be as helpful as you think. Take a look at the following chart to see the huge mortgages that will result from taking advantage of these new lower down payment requirements.

Home Price	Minimum Down Payment	Mortgage Amount	Monthly Mortgage Payment*
$1,000,000	$75,000	$925,000	$5,324
$1,100,000	$85,000	$1,015,000	$5,842
$1,200,000	$95,000	$1,105,000	$6,361
$1,300,000	$105,000	$1,195,000	$6,879
$1,400,000	$115,000	$1,285,000	$7,397

*Based on a 4.5% interest rate and a 25-year amortization.

Those are enormous monthly payments to keep up with. In order to qualify for mortgages of that size, you’ll need to earn a household income in the hundreds of thousands of dollars. The only other option will be to boost your down payment.

And that’s where this new rule might fail a lot of home buyers. They might only qualify for these massive mortgages by making down payments closer to 20% — the previous minimum.

The new insured mortgage limit might not get you into a house, but it’s at least useful as a reminder that one of the best ways to secure a mortgage you can afford is by saving the biggest down payment you can.

Average price: This is the total sales volume, calculated in dollars, divided by the number of home sales. A monthly average price can be swayed by a few expensive properties, which makes it a somewhat unreliable metric for describing market trends. If three $10 million homes are sold in one month in Toronto, for example, it would increase the average price, but it wouldn’t necessarily mean all prices are rising.

Benchmark price: Benchmark prices are an interesting alternative to average prices. They’re the prices that buyers are expected to pay for a particular property type. Benchmark prices are determined using the Canadian Real Estate Association’s MLS Home Price Index, which is more of a modelling tool than an analysis of what’s actually happening in the market.

Median price: Median price is essentially the mid-point between the lowest- and highest-priced homes sold over a particular period. Half of the homes sold would be more expensive than the median, the other half would be less. It’s difficult to gauge the market using median price since it leaves you wondering how high home prices might be.