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.
What is No MOney Down?
Awesome Dawson .ca
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 less common and typically require negotiation with the seller.
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 fill the from below and we will email it to you right away
Disclaimer
Full Service Real Estate
- Please note:
The real estate market is always changing. The government adds and removes programs that best fits the market. Some programs may be available or discontinued.
We do our best to make sure that the information is accurate. But please contact us for up-to-date programs
For Example:
While the First-Time Home Buyer Incentive (FTHBI) was discontinued in 2024, similar programs may still be available at provincial and municipal levels. It's essential to consult with a financial advisor or mortgage professional to explore current options and determine the best strategy for your situation.
Your help in finding our home was exceedingly helpful. Your guidance was professional and personal, and we always felt that our needs were well taken care of. We would strongly recommend you to anyone that is in the market to buy or sell a home. Thanks so much!
- Tom and Sandra
Homeowner
My wife and I had a dream of downsizing from our house into a small condo closer to where we work and play. You and your team helped make that dream a reality. The sale went smoothly and we just closed on an ideal new place and we're excited to call it home.
- Jamie R.
Thank you so much! We didn't know how we were going to sell our house, it needed some work and we tried listing it before with no success. We found you online, called and you've gone out of your way and beyond. We can start over fresh now in our new home! Thanks again.
- Johnson Family
Working with you has been a great experience. You've walked us through the entire process which made it easy because we've never sold a house before. You were able to close and have our check in hand within 10 business days.
- Sarah and Jack
J
A
RE/MAX Hallmark Realty LTD.
Office Address:
13 Offices In The GTA