Thinking About Buying a Home in Markham? Here’s How to Secure That All-Important Down Payment.
Whether you're a first-time buyer, an upsizer, or relocating to Markham, one of the biggest hurdles in your homeownership journey is saving enough for a down payment. With the Markham real estate market continuing to evolve and home values holding strong, preparing your finances is more important than ever.
At CallMikeLau, powered by eXp Realty, I believe in empowering you with clarity and strategy, not just listings. So, let’s break down how to save and source your down payment like a pro.
Why Down Payments Matter in Markham
In Ontario, the minimum down payment depends on the price of the home:
- 5% for homes under $500,000
- 5% on the first $500,000 and 10% on the remainder for homes between $500,000 and $999,999
- 20% minimum for homes over $1 million
- 5% on the first $500,000 and 10% on the remainder for homes between $500,000 and $999,999
- 20% minimum for homes over $1 million
Given that the average detached home in Markham sits well above the $1M mark, many buyers will need at least a 20% down payment. That’s a significant chunk, but with the right plan, it’s absolutely achievable.
Smart Strategies for Saving Your Down Payment.
1. Open a Dedicated Down Payment Account
Create a high-interest savings account or TFSA that’s separate from your everyday spending. Automate transfers each payday to build discipline and momentum.
2. Tap Into the New First Home Savings Account (FHSA)
The FHSA allows first-time buyers to contribute up to $8,000 per year (to a max of $40,000) and withdraw it tax-free for a home purchase. It’s one of the most powerful tools available in 2025.
The FHSA allows first-time buyers to contribute up to $8,000 per year (to a max of $40,000) and withdraw it tax-free for a home purchase. It’s one of the most powerful tools available in 2025.
3. Use Your RRSP via the Home Buyers’ Plan
Eligible first-time buyers can withdraw up to $60,000 from their RRSPs tax-free (must be repaid over 15 years). This can be combined with the FHSA for even greater leverage.
Eligible first-time buyers can withdraw up to $60,000 from their RRSPs tax-free (must be repaid over 15 years). This can be combined with the FHSA for even greater leverage.
4. Cut Non-Essential Spending
Trim subscriptions,
Trim subscriptions,
limit takeout, and focus on mindful spending. Even small adjustments can lead to big savings over 6–12 months.
5. Work With a Mortgage Broker or Financial Planner
Sourcing Your Down Payment Beyond Savings
Gifted Funds from Family
A large percentage of Markham buyers — especially first-time or young professionals — receive down payment gifts from parents. If you’re using a gift, lenders will typically require a signed gift letter to verify it's non-repayable.
Equity from an Existing Home
If you're upsizing or relocating within the GTA, the equity in your current home can serve as the down payment on your next one. I can help estimate your property’s current market value and potential net proceeds.
If you're upsizing or relocating within the GTA, the equity in your current home can serve as the down payment on your next one. I can help estimate your property’s current market value and potential net proceeds.
Builder Deposit Programs
If you're looking into pre-construction homes in Markham, some developers offer extended deposit structures (e.g., 5% now, 5% in 6 months, etc.), giving you more time to come up with t
If you're looking into pre-construction homes in Markham, some developers offer extended deposit structures (e.g., 5% now, 5% in 6 months, etc.), giving you more time to come up with t
he full amount.
Joint Purchases or Co-Buying
Pooling resources with family or close friends is an emerging strategy among buyers in competitive markets.
Pooling resources with family or close friends is an emerging strategy among buyers in competitive markets.