How the threshold applies
The minimum thresholds apply to the price you entered: 5% on the first $500,000, 10% on the portion above.
What the down payment does not cover
That amount pays for the property, nothing else. Add legal fees, inspection, transfer duty, adjustments, and keep a reserve for after you move in.
The permitted minimum is not the ideal amount
Putting less than 20% down also triggers mortgage insurance. The right amount depends on what you have left after closing.
A worked example
For $400,000, the minimum is $20,000 (5%). For $650,000, it is $40,000: $25,000 on the first $500,000, then $15,000 (10%) on the remaining $150,000, which is 6.15% of the price. That is $7,500 more than a flat 5% on the whole price would suggest.
Common questions
What happens if my down payment is below 20%? The mortgage must be insured against default. The premium is added to the amount financed and raises your payment; the Mortgage loan insurance tool lets you estimate it. Do notary fees and transfer duties count toward the down payment? No. They are paid on top, at signing. Plan for them in your budget: the Purchase costs tool estimates them.
Next step
Send me the target price and what you have set aside: I’ll separate the down payment, the costs, and the reserve to keep after closing.