How Much Do You Really Need to Start Investing in Real Estate in Ontario?
- Abask Marketing
- Sep 24
- 3 min read
Are you dreaming about building passive income through real estate? Is it possible that you haven't started investing because you're unsure of how much capital you need?
You're not alone! This is one of the most common questions we hear, and the answer is good news: it can be more accessible than you think.
At Regalway Homes, we help people across Ontario take the first steps in real estate investing—whether you're coming with savings or considering group investments. Anyone can build a path to financial freedom with the right coaching and partnerships.
Down Payments: The Starting Line
In Canada, the minimum down payment depends on a home's purchase price. For example:
For homes $500,000 or less, it's 5% of the purchase price.
For homes between $500,000 and $1.5 million, it's 5% on the first $500K plus 10% on the remaining amount.
Homes above $1.5 million require a 20% down payment. (Canada.ca)
Let's say you're looking at a $750,000 property in the GTA; you'd need $25,000 (5% of $500K) plus $25,000 (10% of the next $250K), totalling $50,000. (Go Wylde Real Estate)
Let's be honest: this figure is certainly in reach, especially with smart planning.
More Accessible Than You Might Think
Starting in 2025, the insured mortgage cap increased to $1.5 million, meaning buyers can now get a mortgage insured with just 5% down on homes up to that price. (NerdWallet, Reuters)
For first-time buyers, this opens up more opportunities in high-demand markets.
Plus, federal programs are helping boost savings:
The First Home Savings Account (FHSA) now allows $10,000 annual contributions, up to $50,000 total, tax-deductible and tax-free on withdrawal.
The RRSP Home Buyers' Plan limit has increased to $45,000, and the federal Down Payment Match Program may match up to 5%, or $25K, in select provinces. (Canada Housing Market)
Beyond Down Payments: Budgeting for Extra Costs
Down payment is just part of the equation. Expect closing costs of 1.5% to 4% of the purchase price to cover legal fees, land transfer tax, and inspections. (Canada's Best Real Estate | The Homess) And if your down payment is under 20%, you'll need mortgage default insurance, which adds to your long-term costs. (NerdWallet, RE/MAX Canada)
Getting Started with Less Than You Think
Here's how you can start investing even if you don't yet have a large down payment:
Tap into federal programs like FHSA and RRSP HBP to grow your funds tax-efficiently.
Work with Regalway Homes to explore group investments or partnerships, like pooling together for a property, or joining co-investment opportunities.
Budget strategically to cover extra costs and set realistic timelines for your first purchase.
With support from Regalway, you're not going in alone. We help you start investing smartly, even with limited upfront capital. Whether you're looking to invest solo or as part of a group, we'll walk you through financing, property selection, and long-term income strategy.
Your First Step Starts Here
Ready to explore your options and start investing in real estate? Visit www.regalwayhomes.com to learn more—or schedule your personal consultation to get started with confidence.
Sources (AP Format)
Financial Consumer Agency of Canada. How much you need for a down payment. Retrieved from https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html
Gowylde.ca. (2025, August 25). How Much Do You Need for a Down Payment in Ontario? (2025 Edition). Retrieved from https://gowylde.ca/how-much-do-you-need-for-a-down-payment-in-ontario-2025-edition/
NerdWallet Canada. (2024, November 4). Buying a House in 2025: Things to Know. Retrieved from https://www.nerdwallet.com/ca/p/article/mortgages/what-to-know-buying-a-home
Ontario Housing Market. (2025, April 14). The New First-Time Buyer Incentives in Canada in 2025. Retrieved from https://ontariohousingmarket.com/2025/04/14/the-new-first-time-buyer-incentives-in-canada-in-2025-and-what-they-really-mean/
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