What is the minimum down payment needed for a home?

The minimum downpayment required to purchase a home in Canada is 5% - regardless of the purchase price. Any mortgage with less than 20% downpayment is subject to approval through CMHC and a premium is paid on the loan requested. Part of the approval process will require that you provide the lender with proof as to where the funds for the downpayment came from. Generally you will need to provide them with proof by way of bank statements, investment statements and/or a gift letter and proof you have received the funds. If you are receiving a gift for the downpayment it is required that the gift is from an immediate family member only. Lenders will also require that you provide them with proof that you have enough money to cover the closing costs associated with the purchase (i.e. land transfer taxes, lawyers fees, etc). For further explanation of the CMHC premium and details please see point below.