For many first-time buyers in Sarnia-Lambton, one of the biggest questions is: How much do I actually need for a down payment? With housing prices and mortgage rules evolving in 2025, understanding down payment requirements is crucial to planning your purchase.

At Blue Coast Realty, we help buyers navigate every step of the process, from budgeting to closing. Here’s what you need to know about down payments when buying a home in Sarnia.

1. The Minimum Down Payment in Canada

The rules for down payments are set federally, and they apply in Sarnia just like anywhere else in Ontario:

• 5% down on the first $500,000 of a home’s price.
• 10% down on the portion between $500,000 and $999,999.
• 20% down on homes $1 million or more.

Example: If you buy a home in Sarnia for $450,000, you’ll need at least $22,500 as a down payment.

2. Typical Home Prices in Sarnia in 2025

The average home price in Sarnia in 2025 is around $480,000. That means most first-time buyers will need a minimum down payment between $24,000 and $30,000, depending on the exact purchase price.

Local Insight: Entry-level condos and smaller homes may require closer to $20,000–$25,000 down, while family homes in Bright’s Grove or Point Edward will often require more.

3. Benefits of a Larger Down Payment

While the minimum gets you into the market, putting more money down has clear advantages:

• Lower monthly mortgage payments.
• Less interest paid over time.
• Avoiding CMHC mortgage insurance if you can put down 20% or more.

Local Insight: Buyers in Corunna who managed to put 20% down often saw their monthly payments drop by hundreds of dollars compared to those who only put down the minimum.

4. First-Time Buyer Incentives

Ontario and federal programs can help. The First-Time Home Buyer Incentive and the Home Buyers’ Plan allow you to access RRSP funds or get shared equity support to reduce costs. These programs can make homeownership more accessible in Sarnia.

5. Saving for Your Down Payment

Building a down payment takes time. Buyers often use a combination of savings, RRSP withdrawals, gifts from family, and new tools like the First Home Savings Account (FHSA) introduced in Canada. Planning early makes the process less stressful.

Local Insight: Many Sarnia buyers are now using FHSAs to save tax-free for their first home, combining it with RRSP withdrawals for extra flexibility.

Planning Your Down Payment in Sarnia

In 2025, most buyers in Sarnia will need at least $24,000 to $30,000 for a down payment on an average home, with higher requirements for larger properties. While the minimum rules apply across Canada, your strategy depends on your budget, lifestyle, and long-term goals.

At Blue Coast Realty, we work with buyers to understand their financing options and connect them with trusted mortgage professionals. If you’re planning to buy in Sarnia, let’s talk about how to make your down payment work for you.