Down payment rules for BC home buyers in 2026
Down payments are where I see the most confusion with buyers, so let me clear up the big ones right away. On a $750K townhome the minimum down payment is $50,000, not 5% of the full price, because the rules stagger once you pass $500K. CMHC premiums can add up to 4% to your mortgage balance, while a couple combining the FHSA and Home Buyers’ Plan can access $200,000, and putting 20% down on a $491K condo ($98,260) eliminates CMHC entirely. One thing you can’t do: borrow your down payment on a minimum-down insured mortgage.
The CMHC stagger rule
Here’s the math many buyers don’t know about. On a $750K townhome you need 5% on the first $500K ($25,000) plus 10% on the remaining $250K (another $25,000), which works out to a $50,000 minimum, or 6.67% of the price. Any time your purchase goes above $500K, that stagger kicks in.
Kelowna down payment table
Here’s what the minimums look like on real Kelowna prices right now:
- Condo at $491,300: $24,565 down (5%), $18,669 CMHC premium, $485,404 total mortgage
- Townhome at $750,000: $50,000 down (6.67%), $21,700 CMHC premium, $721,700 total mortgage
- Single-family home at $1,134,500: $226,900 down (20%), no CMHC, $907,600 total mortgage
FHSA + HBP combination
The FHSA takes $8K a year up to a $40K lifetime cap, with contributions tax-deductible going in and withdrawals tax-free coming out. The Home Buyers’ Plan lets each person pull $60K from their RRSP, repaid over 15 years. Put the two together and you’ve got $100,000 per person, or $200,000 as a couple. My FHSA guide walks through the details.
Gifted funds
A gift from immediate family can cover your entire down payment. You’ll need three things: a signed gift letter confirming it’s non-repayable, proof the donor actually has the funds, and proof the deposit landed in your account. Around here I see gifts most often with UBCO grads staying on for Kelowna’s tech sector, and with Alberta parents helping their kids put down roots in the Okanagan.
Borrowed down payments
You can’t borrow your minimum down payment, and lenders will notice if you try, since they trace every deposit through 90 days of bank statements. The exception is when you already have 20% or more down. At that point borrowing is permitted, for example through a HELOC on another property. And a note for Kelowna’s seasonal earners: if your pay lands in bursts from tourism, the wineries, or a winter at Big White, keep those 90 days of statements tidy.
Sources and method
The rules and figures on this page are checked against primary sources: BC government (property transfer tax), BC first-time buyer exemption, CMHC (mortgage loan insurance). Rates come from the live lender sheet Ash lends from, and carry their own as-of date. Spot an error? Email [email protected] and it gets fixed.
FAQ
Can I use my RRSP and FHSA on the same purchase?
Yes. That’s the $100K per person, $200K per couple combination.
Is the CMHC premium paid upfront?
No, it gets added to your mortgage balance. And BC charges no PST on it.
What’s the minimum down on a $1M home?
At $999,999 it’s $74,999. At $1,000,000 it jumps to $200,000, because the 20% rule applies.
Does the source of my down payment matter?
Yes. Lenders trace 90 days of bank statements, so keep your paper trail clean.
Not sure what your own down payment plan should look like? Call me at 250-859-2100 and we’ll map it out. It’s free to talk.
See also: Kelowna mortgage broker | first-time buyer guide BC.
The purchase calculator works out your minimum down payment, CMHC premium, and full cash to close for any price.
Frequently asked questions
What’s the minimum down payment in BC right now?
5% of the first $500,000 and 10% of the balance, up to the $1.5 million insured cap. Past $1.5 million it’s 20%. On an $800,000 home the minimum works out to $55,000.
Can my down payment be a gift?
Yes, from immediate family, with a signed letter confirming it’s not a loan. Lenders trace deposits, so move the money early and keep the paper trail boring.
Can I borrow my down payment?
Insured rules want it from your own resources or a family gift. Borrowed down payments exist at some lenders, but the loan payment counts against your ratios, which usually defeats the purpose.