Your down payment is the amount of money you have on hand to put towards the payment of your home. The larger your down payment, the smaller your mortgage amount will be. In Canada, a minimum of 5% down payment is typically required. Mortgages greater than 80% of a home’s value are referred to as ‘high-ratio mortgages’ and require that the borrower pays for mortgage default insurance. Buyers with 20% or greater of a down payment typically do not have to pay for mortgage default insurance.