The down payment,
demystified.
Physicians often assume they need 20% down. Physician programs frequently allow far less, and the source of the money matters as much as the amount.
The short answer.
Canadian physician programs typically allow 5% to 10% down on owner-occupied purchases, well below the 20% many physicians assume. Acceptable sources include personal savings, a documented PLOC draw, a gift from immediate family, the RRSP Home Buyers Plan (up to $60,000), and the First Home Savings Account (FHSA). Putting less than 20% down requires CMHC mortgage insurance, with premiums of 2.80% to 4.00% of the mortgage amount.
How much you actually need.
The 20% figure many physicians carry in their heads is the threshold for avoiding mortgage insurance, not the minimum to buy. Physician programs frequently allow 5% to 10% down on owner-occupied principal residences, which is the difference between buying now and waiting years to save.
| Down payment | Insurance required | Notes |
|---|---|---|
| 5% - 9.99% | CMHC insured | Common physician-program minimum on owner-occupied |
| 10% - 19.99% | CMHC insured | Lower premium tier; broader lender choice |
| 20%+ | Uninsured (conventional) | No insurance premium; required on rentals |
Where the money can come from.
- Personal savings, the simplest and most flexible source.
- A documented PLOC draw, accepted as down payment by most physician lenders.
- A gift from immediate family, with a signed gift letter confirming no repayment.
- The RRSP Home Buyers Plan, up to $60,000 per person, repaid over 15 years.
- The First Home Savings Account (FHSA), withdrawn tax-free for a first home.
Most physicians use a blend. A common structure is part savings, part PLOC, and a family gift, assembled to hit the program minimum while keeping an emergency cushion intact.
CMHC insurance and what it costs.
Any purchase with less than 20% down requires mortgage default insurance, most often through CMHC. The premium ranges from 2.80% to 4.00% of the mortgage amount depending on the loan-to-value ratio, and it is added to the mortgage principal rather than paid up front.
Questions doctors ask.
All guidesHow much down payment do physicians need in Canada?
Physician programs typically allow 5% to 10% down on owner-occupied principal residences, below the 20% many physicians assume. Putting less than 20% down requires CMHC mortgage insurance.
Can I use my PLOC as a down payment?
Yes. A documented PLOC draw is accepted as down payment by most physician lenders. Many physicians blend PLOC funds with savings and a family gift to reach the program minimum while preserving an emergency cushion.
How much is CMHC insurance for a physician mortgage?
CMHC mortgage insurance, required when you put less than 20% down, costs 2.80% to 4.00% of the mortgage amount depending on the loan-to-value ratio. The premium is added to the mortgage principal rather than paid up front.
Can I use the RRSP Home Buyers Plan and FHSA together?
Yes. A first-time buyer can combine the RRSP Home Buyers Plan (up to $60,000 per person) with the First Home Savings Account, both withdrawn tax-free toward a qualifying first home.
