If you’re thinking about buying your first home, the down payment is probably the biggest thing on your mind. It can feel like a huge mountain to climb but with the right plan and some smart habits, it’s absolutely doable.

Let’s walk through what you need to know about saving for a down payment in Canada and how to make it feel less overwhelming.

How Much Do You Actually Need?

In Canada, your required down payment depends on the price of the home

Remember that if your down payment is under 20 percent, you’ll also need to pay CMHC insurance which gets added to your mortgage.

Set a Clear Goal

Once you know your price range and the percentage required, set a specific savings goal. For example, if you’re aiming to buy a $600,000 home, your minimum down payment would be $35,000. That’s a mix of 5 percent on the first $500,000 and 10 percent on the remaining $100,000.

Having a concrete number helps you plan and track your progress more clearly

Take Advantage of First-Time Buyer Programs

There are a few programs in Canada that can help you reach your goal faster

These programs can give your savings a serious boost if you qualify

Automate Your Savings

Treat your down payment like a monthly bill. Set up automatic transfers from your main account into a separate savings account right after payday. Even small amounts add up faster than you think when you’re consistent.

Some people call this “paying yourself first” and it’s one of the most effective saving habits you can build.

Cut Back with Purpose

Saving doesn’t mean you have to stop living. But take a good look at where your money goes, like subscriptions you forgot about, takeout you didn’t really enjoy, or impulse purchases that could have gone toward your goal.

A few temporary trade-offs can make a big long-term impact

Watch for Extra Income

If you get a tax refund, work overtime, or earn money on the side, consider putting a chunk of that directly into your savings. Windfalls like these can give your down payment fund a nice bump without affecting your day-to-day budget

Keep Your Savings Safe

Your down payment fund should not be invested in anything high risk. Keep it in a high-interest savings account or a safe short-term option like a GIC. You want it to grow steadily but still be there when you need it

Saving for a down payment takes time—but it’s not about perfection. It’s about having a plan, sticking with it, and using the tools available to you. The earlier you start, the more options you’ll have when you’re ready to buy

Saving for a down payment takes time—but it’s not about perfection. It’s about having a plan, sticking with it, and using the tools available to you. The earlier you start, the more options you’ll have when you’re ready to buy