How much of a down payment do you need to buy a property or an income property?

Published

August 7, 2026

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min

For a principal residence, the minimum down payment is generally 5% on the first $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% from $1.5 million up. An owner-occupied triplex or quadruplex can require 10% with CMHC, but a fully rented building of 2 to 4 units requires 20%.

The down payment is one of the first things to plan for when you buy real estate. Whether you want a condo on the Plateau-Mont-Royal, a house in Rosemont–La Petite-Patrie or a property in Outremont, how much you need depends mainly on the purchase price, the type of property and how you plan to live in it.

For a residential property

If you're buying a property you'll live in as your principal residence, the minimum down payment is generally:

5% on the first $500,000
10% on the portion between $500,000 and $1,500,000
20% for a property of $1.5 million or more

For example, for a $600,000 property, the minimum down payment is $35,000: $25,000 on the first $500,000 and $10,000 on the next $100,000.

When the down payment is under 20%, mortgage loan insurance through CMHC or Genworth is required. The cost of that insurance has to be factored into your financing.

You also need to plan for other purchase costs, including notary fees, the welcome tax (property transfer duties), the inspection and some tax adjustments.

For an income property (multiplex)

The down payment you need depends on whether or not you live in the building.

For a duplex, triplex or quadruplex where you live in one of the units, the financing rules may allow a smaller down payment. For an owner-occupied triplex or quadruplex, the minimum down payment can be 10% with CMHC-insured financing.

On the other hand, if you buy a fully rented building of 2 to 4 units, with no plan to live there, the minimum down payment under CMHC's mortgage loan insurance program is 20%.

Financing an income property also depends on several other factors, like your income, your credit, the rental income the building brings in and the financial institution's criteria.

For example, if you're thinking of buying a duplex in Rosemont, a triplex on the Plateau-Mont-Royal or an income property in Montréal, have your borrowing capacity calculated before you start looking.

A 20% down payment isn't always required

So don't assume you automatically need 20% to buy an income property, or that 5% is always enough.

The down payment depends on the type of building, the number of units, who lives in it and the financing you choose. The lender's criteria can also be stricter than the minimums set by mortgage insurance programs.

Key takeaways

Before you start looking at properties in Montréal, have a financing professional determine your borrowing capacity and how much down payment you have available.

Good preparation lets you target properties that really fit your budget, whether you're looking for a condo on the Plateau-Mont-Royal, a house in Rosemont or a plex in Outremont.

The purchase price is only part of the budget, though: you also need to account for transaction costs, taxes, insurance, condo fees if any and, for an income property, the costs of running the building.