A 20% down payment is out of reach for many GTA buyers, and the good news is you don't necessarily need it. Here's what a 10% down payment path realistically looks like in 2026.
How Insured Mortgages Work
Down payments below 20% require mortgage default insurance, which protects the lender and allows buyers to qualify with less upfront cash, at the cost of an insurance premium added to the mortgage.
Qualifying With a Smaller Down Payment
Lenders will still apply the mortgage stress test regardless of your down payment size, and your debt service ratios need to fit within program guidelines, meaning your income and existing debt matter just as much as your down payment.
- Ask your mortgage professional to confirm current minimum down payment thresholds by purchase price, as these rules are periodically updated
- Factor the insurance premium into your total borrowing cost, not just your down payment
- Get pre-approved before house hunting so your realistic budget is clear from day one
Next step
Numbers can be intimidating, you don't have to run them alone. Contact Hamodi Realty for a personalized affordability breakdown and a referral to trusted local mortgage professionals who know the GTA market inside and out.