How Much Down Payment Do You Really Need to Buy in Vancouver?

Buying a home in Vancouver can feel like trying to win the housing lottery—but understanding how much down payment you actually need can make the goal feel less out of reach.

In this post, we break down:

• The minimum down payment rules in Canada
  
• Real-world down payment examples for Vancouver condos, townhomes, and detached homes in 2025
  
• Smart tools like the First Home Savings Account (FHSA), RRSP Home Buyers’ Plan (HBP), and gifted down payments
  
• Tips for how to get started
  

If you’re planning to buy in Vancouver—or just want to know if it’s even possible—this guide is for you.

Read more: What Happens If You Can’t Afford Your Mortgage in Vancouver?

Minimum Down Payment Rules in Canada

Here’s what the federal government requires:

Home Price	Minimum Down Payment Required
$500,000 or less	5% of the purchase price
$500,001 – $999,999	5% of the first $500K + 10% of the rest
$1,000,000 or more	20% of the entire purchase price

So if you’re buying a $700,000 condo:

• 5% of first $500K = $25,000
  
• 10% of remaining $200K = $20,000
  ➡️ Total minimum down payment = $45,000
  

And if you’re looking at anything $1 million+, you’ll need at least 20%, no exceptions.

My Personal Journey: How I Saved for My First Down Payment in Vancouver

Getting into Vancouver’s real estate market can feel impossible — especially when you’re just starting out. But here’s how I made it happen, one step at a time.

After graduating from UBC, I started working full-time in digital marketing. Like many in their early 20s, I didn’t have a huge salary or a family inheritance waiting for me — but I was lucky in one way: I lived at home, and my parents didn’t charge me rent. That gave me just enough breathing room to start saving seriously.

I still contributed to groceries and personal expenses, but I focused hard on banking as much of my income as I could. I tracked my spending, kept lifestyle inflation minimal, and made sure I was putting aside money every month. Over the next 2–3 years, I built up $60,000 in savings — enough to cover a 10% down payment on a pre-sale condo.

At the time, I bought the unit with my then-partner (now wife). The timing worked out: we locked in at 10% down during the pre-sale phase. That first 10% came from my personal savings. When the condo was completed in late 2022, we put down the second 10% — this time from my wife’s side — and took on the mortgage together from there.

It wasn’t easy, and it required patience, discipline, and teamwork. But it shows that with a plan, support, and realistic expectations, it is possible to break into Vancouver’s housing market — even without a six-figure salary or family money.

Vancouver Home Price Examples (2025)

Let’s look at realistic down payment scenarios based on current average home prices across Metro Vancouver:

🏢 Condo in East Vancouver – $650,000

• 5% on first $500K = $25,000
  
• 10% on remaining $150K = $15,000
  ➡️ Minimum down payment: $40,000
  

🏘️ Townhome in Burnaby – $950,000

• 5% on first $500K = $25,000
  
• 10% on remaining $450K = $45,000
  ➡️ Minimum down payment: $70,000
  

🏠 Detached Home in Vancouver – $2,000,000

• 20% minimum required
  ➡️ Down payment: $400,000
  

💡 Did you know? You’ll also need to factor in mortgage insurance (CMHC fees) if your down payment is below 20%. For example, putting 5% down on a condo means higher monthly payments due to that insurance.

Tools to Help You Save Your Down Payment

1. First Home Savings Account (FHSA)

• Tax-free in, tax-free out
  
• You can contribute up to $8,000/year, up to $40,000 total
  
• If both you and your partner have FHSAs, that’s $80,000 combined!
  
• Learn more: Canada.ca – FHSA
  

2. RRSP Home Buyers’ Plan (HBP)

• Withdraw up to $35,000 from your RRSP ($70,000 per couple)
  
• Must be paid back over 15 years
  
• Useful if you’ve already been saving in RRSPs
  

3. Gifted Down Payment from Family

• Completely allowed in Canada—must come with a signed gift letter
  
• A common option for first-time buyers in Vancouver
  ➡️ Pro tip: Many buyers under 35 are using the “Bank of Mom and Dad” for partial or full down payments.
  

🔄 5%, 10%, or 20%: What’s the Difference?

Down Payment	Pros	Cons
5%	Gets you in the market faster	Higher monthly payments, mortgage insurance required
10%	Smaller loan amount, still accessible	Still pays mortgage insurance
20%	No mortgage insurance, lower monthly payments	Harder to save, delays buying unless supported

💡 Many buyers start with 5% or 10%, then refinance or upgrade as their income grows.

Getting Started: Your First Step Toward Buying

If you’re serious about buying a home in Vancouver, here’s what you can do now:

1. Calculate your budget: Use a mortgage affordability calculator
   
2. Open a FHSA and/or RRSP if eligible
   
3. Talk to a mortgage broker to get pre-approved and review your options
   
4. Track market prices in your preferred neighborhoods (Mount Pleasant condos ≠ West Van detached)
   

Final Thoughts

Yes, Vancouver’s housing market is expensive—but that doesn’t mean you can’t buy a home.

If you’re aiming for a condo or townhome under $1M, a 5% to 10% down payment is enough to get started. Use the tools available to you (like FHSA + HBP), consider sharing costs with a partner or family member, and explore up-and-coming areas to stretch your budget.

At Vancouver Home Hub, we know buying your first home is more than just numbers—it’s about building your life here, with real knowledge and smart planning.

Read more: Townhouse vs Condo in Vancouver: What You Really Need to Know Before Buying