Mortgage Down Payment Quebec — Rules and Exceptions 2026

Q: Can a family gift be used as a down payment?

Yes. A family gift is accepted by most lenders as a down payment for an owner-occupied property. You'll need to provide a gift letter stating the sum is a gift (not a loan) and bank statements showing the transfer.

Q: What is CMHC's Flex-Down?

CMHC allows using borrowed funds (line of credit, personal loan) as a down payment, provided your debt ratio stays within acceptable limits. This option is subject to strict qualification conditions.

Q: Is the FHSA available in Quebec?

Yes. The First Home Savings Account (FHSA) is available across Canada, including Quebec. You can contribute from age 18, up to a lifetime maximum of $40,000.

Q: Can you combine HBP and FHSA?

Yes! A first-time buyer couple can use up to $70,000 through the HBP ($35,000 each) and additionally withdraw FHSA funds (up to $40,000 each). This is one of the most powerful strategies for accumulating a down payment quickly.

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The down payment is the cash amount you pay when purchasing a property. In Canada, federal rules define the minimum required based on the purchase price. Understanding these rules helps you plan your savings and optimize your homeownership strategy.

In Quebec, several down payment assistance programs exist, particularly for first-time buyers. The Home Buyers' Plan (HBP) allows withdrawing up to $35,000 from your RRSP tax-free for your first home. The First Home Savings Account (FHSA) has been another powerful option since 2023.

Key Points

5% minimum down payment (< $500,000)

For a property with a purchase price under $500,000, the minimum down payment is 5%. You'll need to take out CMHC mortgage loan insurance (2.8% to 4% of the loan amount).

5% on $500k, 10% on the excess portion

For a price between $500,001 and $999,999, the minimum down payment is 5% on the first $500,000 and 10% on the excess portion. Ex.: $700,000 = $25,000 + $20,000 = $45,000.

20% = no CMHC insurance

With a down payment of 20% or more, you don't need mortgage loan insurance. On $600,000, you save up to $19,000 in CMHC premiums.

HBP — $35,000 from your RRSP

The Home Buyers' Plan allows withdrawing up to $35,000 ($70,000 for a couple) from your RRSP tax-free for a first home purchase. Repayment over 15 years.

FHSA — New since 2023

The First Home Savings Account allows contributing up to $8,000/year (maximum $40,000) with tax deductions at entry and tax-free withdrawals.

Minimum Down Payment Based on Purchase Price in Canada

Category	Value
Price < $500,000	5% minimum
Price $500,001 – $999,999	5% on $500k + 10% on excess
Price $1,000,000+	20% minimum (no CMHC insurance)
CMHC premium (5% DP)	4.00% of insured amount
CMHC premium (10% DP)	3.10% of insured amount
CMHC premium (15% DP)	2.80% of insured amount

Frequently Asked Questions

Can a family gift be used as a down payment?+

Yes. A family gift is accepted by most lenders as a down payment for an owner-occupied property. You'll need to provide a gift letter stating the sum is a gift (not a loan) and bank statements showing the transfer.

What is CMHC's Flex-Down?+

CMHC allows using borrowed funds (line of credit, personal loan) as a down payment, provided your debt ratio stays within acceptable limits. This option is subject to strict qualification conditions.

Is the FHSA available in Quebec?+

Yes. The First Home Savings Account (FHSA) is available across Canada, including Quebec. You can contribute from age 18, up to a lifetime maximum of $40,000.

Can you combine HBP and FHSA?+

Yes! A first-time buyer couple can use up to $70,000 through the HBP ($35,000 each) and additionally withdraw FHSA funds (up to $40,000 each). This is one of the most powerful strategies for accumulating a down payment quickly.