While the narrative for much of the 2023 housing market has been that prices are rebounding from 2022 lows, home prices are once again slowing down. Though current prices are not nearly as low as they were five years ago, the price difference in some cities is somewhat subtle. The tumultuous ups and downs of the last few years have surged prices in metropolitan cities and slowed price growth in smaller ones, offering homebuyers an affordable chance to enter the market. Now that prices are coming down in most cities, where can homebuyers expect the lowest minimum down payments?

To learn how current down payment minimums compare to those of five years ago, Zoocasa calculated the difference in the required down payment a buyer would need to purchase a benchmark-priced detached house or apartment in 20 cities across Canada in July 2023 vs. July 2018. 

Benchmark home prices were sourced from the Canadian Real Estate Association (CREA). Minimum down payment amounts were calculated based on 5% of the purchase price for homes valued at $500,000 and under, 10% for the portions of home prices between $500,001 – $999,999, and 20% for homes priced at $1 million and over. 

3 Cities See Over $100k Increase in Minimum Down Payments for a Detached House

Out of the 20 cities we analyzed, the majority experienced less than a $20,000 increase in the required minimum down payment over the past five years including Calgary, Montreal, Winnipeg, and Regina. In fact, five cities saw minimum down payments increase by less than $5,000, highlighting an imbalance in price growth experienced across the country. 

Edmonton experienced the smallest change in down payment needed, with the price of a detached home increasing from $397,100 in July 2018 to $425,200 in July 2023. That resulted in a $1,405 increase in the minimum down payment required on a benchmark-priced home, now at $21,260. This is not the smallest minimum down payment on our list, however, which belongs to Saint John at $14,760. Saint John’s minimum down payment required on a benchmark-priced home increased by $5,850 from July 2018, the sixth smallest increase on our list. 

On the high end of the list sits Fraser Valley, Victoria, and Greater Toronto, each with a change in down payment needed in July 2023 of over $100,000. Greater Toronto buyers in particular are dealing with much heftier down payments than five years ago. In 2018, buyers in the GTA had to pay a minimum down payment of $65,120 on a benchmark-priced home of $901,200. Now, the minimum required down payment on a benchmark-priced home of $1,388,900 is $277,780 – an increase of $212,660. 

Though Greater Vancouver escaped the bottom three largest changes in down payment needed, it does take the title for having the highest minimum down payment. With a benchmark home price of $2,014,900 and a minimum required down payment of $402,980, Greater Vancouver’s minimum down payment is nearly $100,000 higher than the next most expensive city, Fraser Valley. 

Apartment Down Payments Offer Much More Affordability to Buyers

Unlike the detached home sector where every city experienced an increase in the minimum down payment required, one city experienced a decline in the minimum down payment required for an apartment. In 2018, the benchmark price for an apartment in Edmonton was $207,900 with a down payment of $10,395. In July 2023, the benchmark price for an apartment dropped to $180,600 and as such the down payment dropped by $1,365 to $9,030 – the smallest minimum down payment on our list. 

The majority of cities experienced an increase in the required down payment of less than $10,000, with Regina having the smallest increase at just $855. This leaves buyers with several options for properties under $300,0000 including Greater Moncton, Quebec City, Winnipeg, and Saskatoon. 

Only seven cities experienced an increase in price greater than $10,000, with Greater Toronto having the largest change in down payment needed at an increase of $23,380. The highest minimum down payment once again belongs to Greater Vancouver with a benchmark apartment price of $771,600 and a minimum down payment of $52,160. 

Zoocasa (Mackenzie Scibetta, August 23,2023)