Direct answer
Start with the complete cost.
A down payment is only one part of readiness. Canadian buyers may be able to use an FHSA and the RRSP Home Buyers' Plan, subject to current eligibility rules. Closing costs, an emergency fund and an affordable ownership budget still need separate attention.
Why this matters
The payment is only one outcome.
Maximizing a program is not the same as being ready to own. The strongest plan leaves room for repairs, taxes, insurance and life after closing.
Paths to compare
There may be more than one useful route.
- Build a target that includes the down payment, closing costs and a reserve.
- Check current FHSA eligibility and contribution rules with the CRA.
- Assess the Home Buyers' Plan together with its future repayment obligation.
- Wait or change the target if the ownership budget would be fragile.
When mortgage financing may help
A mortgage may help once the purchase remains affordable under realistic payments and full ownership costs, not merely the maximum approval amount.
When it may not help
Buying may not help when it empties savings, depends on unstable income, or prevents more urgent financial goals.
Risks and trade-offs
Pressure-test the appealing option.
- Program rules and limits can change; verify them before acting.
- HBP withdrawals reduce retirement savings and create repayment obligations.
- Closing and ownership costs can exceed the initial estimate.
Decision checklist
Gather the evidence before deciding.
- ✓Target purchase price and comfortable monthly budget
- ✓Down payment source and program eligibility
- ✓Closing-cost estimate for the province and municipality
- ✓Emergency and repair reserve after closing
- ✓Current CRA program rules reviewed
Authoritative sources