First-Time Buyers: Programs, down payment strategies, and the buying process in our First-Time Home Buyer Guide.
20% down on a $900,000 house = $180,000 — eliminating $33,400 in CMHC insurance while securing 0.15-0.25% better rates (saving ~$30,000 over 25 years) and reducing monthly payments by $969/month versus minimum down scenarios.
A $900,000 home represents competitive Toronto detached (older stock in Scarborough, North York), entry-level Vancouver detached (Surrey, Burnaby with renovation needs), or top-tier luxury homes in Calgary, Ottawa, and Montreal. This price point requires dual high incomes ($200,000+) and often represents buyers upgrading from previous properties or professionals in high-compensation fields.
Accumulating $180,000 demands 4-6 years for households earning $195,000-$235,000 starting from zero, though most buyers at this level extract equity from previous properties ($150K-$250K) or receive substantial family assistance ($80K-$120K). Couples maximizing FHSA ($94,800) still need $1,775/month additional savings or significant side income.
This guide examines total capital requirements ($202,475 including closing), Toronto’s combined $28,950 land transfer tax burden, and wealth-building strategies including property ladder approaches, executive compensation optimization, and family gifting structures.
Down Payment Options
| Down Payment % | Amount | Mortgage | CMHC Insurance |
|---|---|---|---|
| 7.22% (min) | $65,000 | $835,000 | $33,400 |
| 10% | $90,000 | $810,000 | $25,110 |
| 15% | $135,000 | $765,000 | $21,420 |
| 20% | $180,000 | $720,000 | $0 |
| 25% | $225,000 | $675,000 | $0 |
Total Cash Needed at Closing
| Expense | Amount |
|---|---|
| Down payment (20%) | $180,000 |
| Land transfer tax (Ontario) | $14,475 |
| Legal fees | $2,200 |
| Home inspection | $650 |
| Title insurance | $650 |
| Moving costs | $4,500 |
| Total cash needed | $202,475 |
Land Transfer Tax by Province
On a $900,000 home:
| Province | Land Transfer Tax |
|---|---|
| Ontario | $14,475 |
| BC | $22,000 |
| Quebec | $12,750 |
| Alberta | $0 |
| Toronto (additional) | +$14,475 |
In Toronto: Total = $28,950 before rebates.
Monthly Payment Comparison
At 5.5% interest, 25-year amortization:
| Down Payment | Mortgage | Monthly Payment |
|---|---|---|
| 7.22% (min) | $868,400* | $5,369 |
| 10% | $835,110* | $5,163 |
| 20% | $720,000 | $4,400 |
*Includes CMHC premium.
Income Required
To qualify for a $720,000 mortgage:
- Monthly payment (5.5%): $4,400
- Property tax + heat: $950
- Total housing: $5,350
- Required income (GDS 32%): ~$200,625/year
What $900,000 Buys
| Region | Property Type |
|---|---|
| Toronto | 3-4BR detached Scarborough, North York (older) OR modern townhouse Richmond Hill |
| Vancouver | Older detached Surrey, Burnaby needing updates OR new townhouse Langley |
| Calgary | 3,500+ sq ft luxury detached, walkouts, mountain views, premium everything |
| Ottawa | High-end 3,000+ sq ft detached in top neighborhoods, backing onto green space |
| Montreal | Luxury homes in Westmount or premium waterfront condos with concierge |
How to Save $180,000
Property Ladder Reality (Most Common):
- Bought condo 2017: $400K (5% down)
- Sold 2024: $620K
- Equity after fees: $210K
- Minimal additional savings needed
Starting from Zero (Couple, 5 Years):
| Component | Amount |
|---|---|
| FHSA maximized | $94,800 |
| Aggressive savings: $1,700/month × 60 | $102,000 |
| Total | $196,800 |
Family-Assisted Path:
- Parental gift: $100,000
- FHSA (couple, 3 years): $72,720
- Own savings: $3,000/month × 36 = $108,000
- Total: $280,720 (enables 25%+ down)
Buyer Profiles
Profile 1: Toronto Property Ladder
- Income: $220,000
- Previous condo sold: $230K equity
- Purchase: North York detached
- Strong position for offers
Profile 2: Vancouver Tech Executives
- Income: $250,000 combined
- RSU vesting: $120,000 over 4 years
- FHSA: $94,800
- Purchase: Burnaby detached
Profile 3: Calgary High Earners
- Income: $205,000
- No previous property
- Parental gift: $80,000
- Savings: $110,000 over 4 years
- Purchase: Premium new build in Mahogany
Bottom Line
A $180,000 down payment eliminates $33,400 CMHC + ~$30,000 rate savings, delivering $4,400/month payments for households earning $200,000-$235,000.
Most buyers at this price point either:
- Ladder from previous property (extracting $180K-$250K equity)
- Combine high dual incomes with 4-5 years aggressive saving
- Receive substantial family gifts ($80K-$120K)
Starting from zero requires exceptional discipline: $1,775/month additional savings beyond FHSA for 5 years.
Related Guides
Sources
- Canada Mortgage and Housing Corporation. “Rental Market Report.” cmhc-schl.gc.ca/professionals/housing-markets-data-and-research
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