How Much Do I Really Need for a Down Payment?

Buying a home in Salmon Arm can feel like a dream until you start thinking about the down payment. Many first-time buyers assume you need a massive pile of cash; sometimes $100,000 or more on a $600,000 home. The reality is very different. Knowing the real minimum can turn that “someday” into a clear timeline.

Q: Do I need 20% down to buy?

Not at all. That’s a common misconception. In Canada, you only need 5% of the first $500,000 and 10% of the portion above that up to $999,999.

On a $600,000 home, here’s the breakdown:

• 5% of $500,000 = $25,000

• 10% of $100,000 = $10,000

Minimum total down payment = $35,000.

That’s a far cry from the $120,000 many people imagine.

Q: Why does 20% get thrown around so much?

Because putting down 20% avoids mortgage default insurance. But for many buyers in British Columbia, entering the housing market sooner is more important than avoiding insurance. Paying a bit more upfront opens doors and helps you start building equity faster.

Q: What about closing costs?

Expect roughly 1.5–3% of the purchase price for legal fees, property transfer taxes, inspections, and adjustments. These costs are separate from the down payment but necessary to plan for. Be sure to ask your trusted legal professional if you qualify for a full or partial Property Transfer Tax exemption.

Q: Should I feel behind if I haven’t saved enough?

Absolutely not. Most buyers overestimate what they need, which creates unnecessary stress. Seeing the real minimum gives clarity, turning dreams into a realistic plan.

If you’re ready to explore what could fit your budget, starting with a pre-approval or mortgage check-in is the smart first step. A clear plan now means less stress and more confidence when you’re ready to buy. Don’t stress, ask those questions now.