A down payment reduces the total price of a new home, with the remaining cost financed by a mortgage. In Alberta, the minimum down payment varies by home price: 5% for homes up to $500,000, 5% on the first $500,000 and 10% on the remainder for homes priced between $500,000 and $999,999, and 20% for homes priced at $1 million or more. Additionally, if the down payment is less than 20%, mortgage insurance is required. These rules are applicable across Canada.