What is No Money Down?

Awesome Dawson .ca

Traditional mortgages typically require a down payment ranging from five per cent to 20 per cent of the home’s purchase price.

A no-down-payment mortgage is a home loan option that allows the borrower to finance a property’s entire purchase price without needing a down payment. This allows homebuyers to finance 100 per cent of the property’s value.

Government Programs

While traditional down payments are standard, certain government programs can assist in reducing the initial financial burden:


First-Time Home Buyer Incentive (FTHBI):
This shared-equity mortgage program offers eligible first-time homebuyers 5% of the purchase price of a resale home or 5-10% of a newly constructed home. The loan is interest-free and repayable within 25 years or upon sale of the property.

• First Home Savings Account (FHSA):
  Introduced in 2023, the FHSA allows first-time homebuyers to save up to $8,000 annually, with a lifetime limit of $40,000. Contributions are tax-deductible, and withdrawals for purchasing a home are tax-free.

Canada Mortgage and Housing Corporation (CMHC) FlexDown Program

The CMHC FlexDown Program allows homebuyers to use borrowed funds, such as a personal loan, line of credit, or credit card, to cover the down payment. This makes it possible to purchase a home without upfront savings. However, lenders will assess your ability to handle additional debt responsibly.

Key points to consider:

• You must meet standard mortgage qualification requirements.

• A strong credit score and stable income are essential.

• Additional debt from the borrowed down payment may impact your overall affordability.

Private Lenders

If traditional mortgage lenders require a down payment beyond your means, private lenders might offer alternative financing solutions. These lenders often have more flexible terms but may charge higher interest rates and fees. It's crucial to thoroughly research and understand the terms before proceeding.

Vendor Take Back (VTB) Mortgages

In a VTB mortgage, the seller agrees to lend the buyer a portion of the purchase price, effectively acting as the mortgage lender. This arrangement can reduce or eliminate the need for a traditional down payment. However, VTB mortgages are le

Rent-to-Own

Rent-to-own agreements allow potential buyers to lease a property with the option to purchase it after a specified period. A portion of the rent paid may be credited toward the future down payment. This method enables buyers to build equity while improving their financial standing.

Program Qualifications

For Program Qualification Please contact us