Saving a down payment is the biggest barrier most Canadians face when trying to buy a home. While you *can* purchase with as little as 5% down, there are huge advantages to aiming for 20% whenever possible.

Here are the five strongest benefits of putting 20% down:

1️⃣ Easier to qualify and service the debt

With a 20% down payment, your mortgage is smaller — which immediately lowers your debt ratios. Lenders use two main rules to determine how much you can afford:

✔️ GDS (Gross Debt Service):

Your mortgage payment + property taxes + heat + 50% of condo fees must fit within roughly 35–39% of your gross income.

✔️ TDS (Total Debt Service):

Your GDS + all other monthly debt payments (car loans, credit cards, lines of credit, etc.) must stay under roughly 40–44% of your gross income.

With a larger down payment, both ratios improve, giving you more purchasing power and a higher chance of approval.

2️⃣ Smaller monthly mortgage payments

More down = less borrowed = lower monthly payments.

This reduces financial stress and frees up money for savings, emergencies, and lifestyle spending. A smaller mortgage also protects you from rising rates when it’s time to renew.

3️⃣ No mortgage default insurance required

With less than 20% down, federal regulations require you to pay mortgage default insurance (CMHC, Sagen or Canada Guaranty).

This insurance protects the lender — not you — and adds thousands of dollars to your mortgage.

At 20% down:

✔️ no insurance premium

✔️ no added costs

✔️ no extra fees tacked onto your mortgage balance

4️⃣ Less interest paid over the life of the mortgage

Even a slightly smaller mortgage can translate to tens of thousands of dollars saved over 25–30 years.

By putting 20% down, you shorten the amortization and reduce total interest paid dramatically.

5️⃣ Immediate equity in your home

A 20% down payment instantly gives you meaningful equity the moment you take possession.

This protects you if:

✔️ the market dips

✔️ you need to refinance later

✔️ you want to upgrade or move

✔️ you face unexpected financial challenges

Having equity provides flexibility and strengthens your long-term financial position.

💬 Final Thought

While not everyone can reach 20%, it remains the smartest target if you want lower payments, lower risk, and more financial security.

If you want to explore down-payment strategies or see what you qualify for today, reach out — The Frontline Mortgage Group can guide you step-by-step.