A down payment is vital for both legal and practical reasons. Canadian law stipulates that you must put down a minimum amount of money upfront toward a property purchase. The down payment also influences your mortgage size and the interest rate your lender assigns to it. In general, the higher your down payment, the smaller the mortgage you’ll need to undertake. You could also secure a lower rate. Since a mortgage is often a multi-decade commitment, it’s essential to consider how your down payment will affect your overall financial situation.