How much down payment do I need to buy a house?

In the US, FHA loans accept 3.5% down with a 580+ credit score; conventional loans typically need 5-20%. In Canada, the legal minimum is 5% on the first $500K and 10% on the portion above, with CMHC insurance required below 20%.

Should I put 20% down to avoid PMI/CMHC insurance?

Yes if you can afford it without draining your emergency fund. PMI/CMHC adds $100-300/month on a typical home and stays on the loan for years; the math almost always favors waiting and putting 20% down rather than buying sooner with insurance.

How long does it take to save a 20% down payment?

For a $400,000 home you need $80,000 down. At $1,000/month in a 4% high-yield savings account that takes about 6 years; at $1,500/month it drops to under 4 years.

For educational purposes only — estimates, not financial advice. Consult a professional before major decisions.

Down Payment Savings Calculator

How to Use This Down Payment Calculator

This calculator projects how long it will take to save a target down payment given a monthly contribution and expected return, and shows a month-by-month savings path.

How It’s Calculated

Solve for n (months) in:
Goal = Monthly Deposit × [ ((1 + r)^n − 1) / r ]

Here r is the monthly return rate on your savings — 0% for a plain savings account, higher for a GIC, high-interest savings account, or investment mix.

Example

Saving $800 per month toward a $60,000 down payment in a 4% high-interest savings account takes about 68 months (5.7 years), versus 75 months with no interest at all.

Frequently Asked Questions

How much down payment do I actually need?

In the US, conventional loans often allow as little as 3% to 5% down. In Canada, the minimum is 5% up to $500K and 10% on the portion above that, with mortgage insurance required under 20% down.

Does a bigger down payment always make sense?

Not always — it depends on your loan’s interest rate versus what that money could earn invested elsewhere, and whether a smaller down payment triggers mortgage insurance costs.

Where should I keep down payment savings?

A high-interest savings account or short-term GIC/CD is standard, since the money typically needs to stay liquid and low-risk within a one to five year window.