Buying a million-dollar home in Canada changes the mortgage rules in two places. Below $1.5 million, a buyer can still use an insured mortgage with less than 20% down. At $1.5 million or more, insurance isn’t available, so the minimum down payment is 20% and the mortgage is uninsured. And with 20% or more down on any home worth $1,000,000 or more, the mortgage can’t be insured even by the lender, which affects the rate. This guide covers what changes as the price climbs. It is part of our mortgage types hub.
The rules at $1 million and above
The minimum down payment is 5% of the first $500,000 and 10% of the rest for homes under $1.5 million, and 20% at $1.5 million or more. The CMHC mortgage rules set out the insured price cap and the other conditions for an insured mortgage.
| $1,000,000 to just under $1.5 million | $1.5 million and above | |
|---|---|---|
| Minimum down payment | The tiered minimum (5% and 10% bands) | 20% of the price |
| Default insurance | Required if you put down less than 20% | Not available |
| Insurance category with less than 20% down | Insured | Not possible |
| Insurance category with 20% or more down | Uninsurable | Uninsurable |
| Longest amortization | 25 years insured, or 30 for first-time buyers and new builds; set by the lender if uninsured | Set by the lender |
| Stress test | Applies | Applies |
Insured vs uninsured mortgages explains why a home worth $1,000,000 or more with 20% down falls in the uninsurable category even below $1.5 million.
Down payment at million-dollar prices
| Purchase price | Minimum down payment | 20% down | Category |
|---|---|---|---|
| $1,000,000 | $75,000 | $200,000 | Insured with the minimum; uninsurable with 20% or more |
| $1,250,000 | $100,000 | $250,000 | Insured with the minimum; uninsurable with 20% or more |
| $1,499,999 | $125,000 | $300,000 | Insured with the minimum; uninsurable with 20% or more |
| $1,500,000 | Not available: 20% required | $300,000 | Uninsurable |
| $2,000,000 | Not available: 20% required | $400,000 | Uninsurable |
The jump comes at $1.5 million: one dollar of extra price moves the minimum down payment from about $125,000 to $300,000. A buyer who stays just under the cap with the minimum down payment pays a CMHC insurance premium on a large loan, though, so the smaller down payment comes with a larger mortgage and a higher payment; what CMHC insurance costs shows the premium in dollars. The minimum down payment calculator works out other prices.
Income needed
The income needed depends on the rate, the down payment, property tax and your other debts, all tested at the qualifying rate set by the mortgage stress test. Lenders check that you could afford the payments at the greater of your contract rate plus 2% or 5.25%, a floor set by OSFI for uninsured mortgages and by the federal government's mortgage insurance rules (the Minister of Finance's Eligible Mortgage Loan Regulations) for insured ones. Worked estimates by price are in our guides to the income needed for a $1 million home, a $1.5 million home and a $2 million home.
A longer amortization lowers the qualifying payment. On an uninsured mortgage the lender sets the limit, and many allow 30 years; an insured mortgage below $1.5 million can be amortized over 30 years if a borrower is a first-time buyer or the home is newly built (30-year amortization rules). The 25 vs 30-year comparison shows what the longer amortization costs in interest.
Rates on uninsurable mortgages
Lenders usually price uninsurable mortgages above insured and insurable ones, because they carry all of the default risk and can’t fund them through government-backed securities. On a large balance, even a small rate gap adds up: each 0.10 percentage points on a $1,000,000 mortgage is about $1,000 a year in interest. Compare current offers on our mortgage rates page; insured vs uninsured mortgages explains how each category is priced.
Strategies for $1 million+ purchases
Build the down payment
| Source | Notes |
|---|---|
| Savings and investments | Selling non-registered investments can trigger capital gains tax |
| FHSA | Up to $40,000 in lifetime contributions, usable at any price for a qualifying first home |
| RRSP Home Buyers’ Plan | Up to $60,000 per person for eligible first-time buyers (HBP and FHSA) |
| Family gift | Usually with a signed letter confirming it doesn’t have to be repaid |
| Equity in your current home | If you’re moving up, the sale proceeds become the down payment |
Lower your debt ratios
Every monthly debt payment counts against the mortgage you can qualify for, because lenders add it to your housing costs in the total debt service ratio. Paying off a car loan or a line of credit before applying can raise the maximum mortgage noticeably; GDS and TDS ratios explains the calculation.
Count rental income
If the home has a legal secondary suite, lenders may count part of the expected rent toward your income. How much they count, and what proof they want (a lease or an appraiser’s market-rent estimate), varies by lender; a mortgage broker can compare their policies.
Lender options for large mortgages
| Lender type | Notes |
|---|---|
| Big banks (standard lending) | Standard underwriting and rate sheets; each bank sets its own maximum loan size |
| Big banks (private banking) | For high-net-worth clients: relationship pricing and more flexible underwriting, usually tied to investable assets held with the bank |
| Monoline lenders | Often competitive rates, sometimes with lower maximum loan sizes |
| Credit unions | Limits vary widely |
| B-lenders | More flexible qualification at higher rates (B-lender mortgages) |
| Private lenders | Lend mainly on the property’s equity, at the highest rates and fees |
Taxes at higher prices
In most provinces land transfer tax is charged at rates that step up with the price, so it can be a large closing cost on a $1 million+ home; the calculator shows the amount for each province and city. Buyers who aren’t Canadian citizens or permanent residents also face the federal foreign buyer ban and provincial non-resident taxes; mortgages for non-residents covers those. The federal Underused Housing Tax no longer applies for 2025 and later years.
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.
- Canada Revenue Agency: FHSA: Participating in your FHSAs
- Canada Revenue Agency: RRSP: The Home Buyers' Plan
- Canada Revenue Agency: Introduction to the Underused Housing Tax
- CMHC: CMHC Purchase
- Department of Finance Canada: Boldest mortgage reforms in decades come into force today
- Financial Consumer Agency of Canada: How much you need for a down payment
- Justice Laws (Canada): Eligible Mortgage Loan Regulations
- OSFI: OSFI exempts uninsured mortgage straight switches from the prescribed MQR andβ¦
- OSFI: Amendments to the minimum qualifying rate for uninsured mortgages