Buying a home in Markham can feel overwhelming, especially when it comes to figuring out how much down payment you really need. That’s where guidance matters. Michael John Lau and Neeraj Moolchandani, local Markham real estate experts with Kaizen Real Estate, work closely with buyers every day to help them understand their options, save wisely, and make confident decisions.

Many buyers assume they need 20% saved before even considering a purchase, but that’s not always the case. In reality, strategic planning and understanding local rules can get you into a home sooner than you think.

This guide walks you through:

• The real minimum down payment rules in Canada

• What buyers in Markham actually put down

• First-time buyer programs that reduce upfront costs

• Practical strategies for entering the market sooner

• How to plan your finances smartly in Markham’s competitive housing market

What Is a Down Payment?

A down payment is the portion of the purchase price you pay upfront when buying a home. The remainder is financed through a mortgage.

The size of your down payment affects:

• Mortgage approval

• Monthly payments

• Insurance costs

• Overall affordability

• Long-term financial flexibility

In Markham, where average home prices are higher than in many GTA suburbs, down payment strategy matters as much as down payment size. Michael and Neeraj often advise buyers to focus on what fits their financial situation, rather than chasing an arbitrary 20% target.

Minimum Down Payment Rules in Canada (2025)

In Canada, the minimum down payment is determined by the purchase price, not the property type or city.

Current Minimum Requirements:

• 5% on the first $500,000

• 10% on the portion between $500,000 and $1,500,000

• 20% for homes priced over $1.5 million

📌 Homes under $1.5M can be purchased with less than 20% down but require mortgage default insurance. Michael and Neeraj often guide clients through these insurance requirements to ensure buyers are prepared for upfront and ongoing costs.

Why Markham Buyers Feel Down Payment Pressure

Markham’s appeal, top-ranked schools, transit access, strong resale value, and diverse housing, comes with higher price points.

Typical Markham Price Ranges:

• Condos: $600,000–$800,000

• Townhomes: $900,000–$1.2M

• Detached Homes: $1.3M–$2M+

Because many properties approach or exceed $1M, buyers often feel discouraged before running the actual numbers. Michael and Neeraj frequently remind clients that breaking down the numbers reveals that entry is more achievable than it seems.

Real Down Payment Examples in Markham

Buying a $650,000 Condo

• 5% of $500,000 = $25,000

• 10% of $150,000 = $15,000
  Minimum Down Payment: $40,000

Buying a $950,000 Townhome

• 5% of $500,000 = $25,000

• 10% of $450,000 = $45,000
  Minimum Down Payment: $70,000

Buying a $1.25M Detached Home

• 5% of $500,000 = $25,000

• 10% of $750,000 = $75,000
  Minimum Down Payment: $100,000

Buying a $1.6M Detached Home

• 20% required
  Minimum Down Payment: $320,000

Do You Really Need 20% Down in Markham?

When 20% Down Makes Sense

• Purchasing over $1.5M

• Wanting to avoid mortgage insurance premiums

• Prioritizing lower monthly payments

• Investors optimizing cash flow

When Less Than 20% Is Smarter

• First-time buyers entering earlier

• Families upgrading within 3–5 years

• Buyers purchasing in high-growth school districts

• Those with strong income but limited savings

💡 Michael John Lau and Neeraj Moolchandani often point out that waiting years to save 20% can sometimes cost more than entering with a smaller down payment due to price appreciation in Markham.

Mortgage Insurance Explained (CMHC, Sagen, Canada Guaranty)

If your down payment is under 20%, mortgage default insurance is required.

How It Works:

• Premium ranges from 2.8% to 4% of the mortgage amount

• Added to the mortgage (not paid upfront)

• Allows buyers to purchase with less cash

📌 This insurance can enable buyers to enter the Markham market sooner, and Michael and Neeraj guide clients to understand its implications fully.

First-Time Buyer Programs That Help in Markham

First Home Savings Account (FHSA)

• Up to $40,000 per person

• Tax-deductible contributions

• Tax-free withdrawals for a home purchase

• Couples can combine up to $80,000

RRSP Home Buyers’ Plan (HBP)

• Withdraw up to $35,000 per person

• No tax on withdrawal

• Repayment over up to 15 years

Ontario Land Transfer Tax Rebate

• First-time buyers may receive up to $4,000

• Applies to Markham purchases

Michael John Lau and Neeraj Moolchandani help clients leverage these programs to reduce upfront costs and improve cash flow, making homeownership more attainable.

How Much Cash Do You Really Need on Closing Day?

Your down payment is just one part of the equation.

Typical Buyer Closing Costs:

• Land transfer tax

• Legal fees

• Home inspection

• Appraisal

• Adjustments (taxes, utilities)

• Moving costs

📌 Plan for an additional 1.5%–2.5% of the purchase price beyond your down payment. Michael John Lau and Neeraj Moolchandni always review these costs with clients to avoid surprises.

Can You Buy in Markham With Less Than 10% Down?

Yes, many buyers do.

Common Buyer Profiles:

• Condos: 5–7% down

• Townhomes: 7–10% down

• Detached homes under $1.5M: 10–15% down

Success depends on:

• Income strength

• Debt ratios

• Property type

• Long-term goals

Michael and Neeraj guide buyers through mortgage pre-approval and realistic affordability planning, so entering the market with a smaller down payment is safe and strategic.

Common Buyer Questions Answered

How much down payment do I need to buy in Markham?

Most buyers need $40,000–$150,000, depending on price and property type.

Do Markham homes require 20% down?

Only homes priced above $1.5 million require 20%.

Is it better to wait or buy now with less down?

In many cases, buying earlier provides better long-term results than waiting to save 20%.

Can first-time buyers afford Markham?

Yes, especially with condos, FHSA savings, and proper planning.

Strategic Advice for Markham Buyers

The right question isn’t “What’s the minimum?”
It’s “What down payment strategy fits my life?”

The best buyers focus on:

• Entry timing

• Location quality

• School zones

• Transit access

• Long-term equity growth

A well-planned purchase often outperforms waiting for the “perfect” down payment. Michael and Neeraj emphasize clarity, strategy, and market insight as the keys to success.

Final Takeaway

Buying in Markham is achievable for more buyers than most people realize.

You don’t need:

• Perfect timing

• 20% saved

• Every answer figured out

You need:

• Accurate numbers

• Local market insight

• A realistic plan

With guidance from Michael John Lau and Neeraj Moolchandani, buyers can confidently navigate the Markham market and move in sooner than they expect.

Not sure if your down payment is enough to buy in Markham?
Michael and Neeraj help buyers map out clear, realistic options before making a move.

📞 647-370-8656
🏡 Speak with a local Markham real estate team and get clarity without pressure.