One of the most common myths in real estate is that you must have a 20% down payment to buy a home. For many buyers in Windsor — especially first-time buyers — that number can feel overwhelming and, frankly, out of reach.
The truth? You don’t need 20% down to purchase most homes in Windsor. In fact, many buyers are getting into the market with as little as 5% down. Let’s break down what that means, when 20% is required, and whether aiming for 20% makes sense for you.
Across Canada, the minimum down payment depends on the purchase price of the home:
5% for homes up to $500,000.
10% for the portion of the price between $500,000 and $1,499,999.
20% for homes $1.5 million or more.
So unless you’re buying a home over $1.5M (less common in Windsor compared to Toronto), you can often buy with far less than 20% down.
To make this clearer, let’s look at a few examples:
$450,000 home → $22,500 minimum down (5%).
$550,000 home → $30,000 minimum down ($25,000 on the first $500,000 + $5,000 on the extra $50,000).
$1,500,000 home → $300,000 minimum down.
As you can see, you don’t need $150,000 (20%) saved to purchase an average Windsor home — often, $25K–$40K is enough to get started.
Even though you don’t need 20% down, there are reasons some buyers choose to save for it:
Avoid Mortgage Insurance: With less than 20% down, you’ll pay CMHC mortgage insurance. This is a premium added to your mortgage that protects the lender, not you.
Lower Monthly Payments: A bigger down payment = smaller loan = reduced monthly payments.
Stronger Offers: Sometimes sellers see a higher down payment as a sign of a stronger buyer.
If you can comfortably save 20%, it can be a smart move. But don’t let the 20% myth stop you from buying if you’re otherwise ready.
Imagine buying a $500,000 home in Windsor.
5% down ($25,000):
Mortgage = $475,000
CMHC insurance applies
Lower upfront cost, higher monthly payments
20% down ($100,000):
Mortgage = $400,000
No CMHC insurance
Higher upfront cost, lower monthly payments
Both paths are possible — it depends on your financial comfort level and how quickly you want to enter the market.
In Windsor, some first-time home buyers are purchasing with 5%–10% down. Affordability is stronger here than in Toronto or Ottawa, which means you can break into the market sooner without needing six figures in savings.
Many buyers also take advantage of programs like the First Home Savings Account (FHSA), Home Buyers’ Plan (HBP), and the Ontario Land Transfer Tax Rebate to help bridge the gap.
No — you don’t need 20% down to buy a home in Windsor. While a larger down payment comes with advantages, many people successfully purchase homes here with 5%–10% down.
If you’re not sure what’s right for your situation, the best next step is to get advice tailored to your budget and goals. We can connect you with trusted mortgage specialists in Windsor and work with you to build a buying strategy that fits your goals. Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Kingsville, LaSalle, Harrow, and Chatham, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!
