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First-time buyers
Buying with 5% down in 2026
The rules, the insurance premium, and the number people forget to budget for.
Rateshop Team · Jul 17, 2026 · 5 min read
Minimum down payment is 5% of the first $500,000, 10% of the portion from $500,000 to $1.5M, and 20% above that.
The default insurance premium
Below 20% down, insurance is mandatory. At 5% down the premium is 4.00% of the loan amount, added to your mortgage rather than paid up front. On a $600,000 purchase with 5% down, that is roughly $22,800 rolled into the balance.
The number people forget
Closing costs run 1.5% to 4% of purchase price: land transfer tax, legal fees, title insurance, adjustments, and a home inspection. Lenders want to see that money exists on top of the down payment.