No Down Payment Mortgage - Medicine Hat, Alberta
Saving a down payment takes time — but there are options that can help you get into a home sooner. I'll walk you through what's available and what actually makes sense for you.
Want to Buy a Home But Haven't Saved a Down Payment Yet? Let's Talk About Your Options.
Saving a down payment while paying rent, managing living expenses, and trying to build a life is genuinely hard. Many Canadians feel like homeownership is out of reach simply because they haven't been able to set aside the cash for a down payment — and that's a frustrating place to be.
The honest truth is that a true zero-down mortgage no longer exists in Canada the way it once did. But that doesn't mean you're out of options. There are legitimate, lender-approved ways to get into a home with little to no personal savings — and understanding what's actually available is the first step.
The Honest Picture on Zero Down in Canada
Before 2008, zero-down mortgages were available in Canada. The federal government eliminated them following the global financial crisis to protect the housing market and borrowers from taking on more than they could handle.
Today, the minimum down payment in Canada is 5% of the purchase price for homes under $500,000. However, where that 5% comes from is more flexible than many people realize — and there are programs and strategies that can get you into a home without needing to have saved that 5% yourself.
What to Think About Before Buying With Minimal Down Payment
Going in with the minimum down payment or a borrowed down payment means taking on more debt. That's worth thinking about carefully:
A smaller down payment means a larger mortgage, which means higher monthly payments. Make sure your budget genuinely supports the ongoing cost of homeownership — not just the purchase itself.
Your Monthly Payments Will Be Higher
Any down payment under 20% requires mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The premium is added to your mortgage balance and ranges from 2.8% to 4% of the mortgage amount depending on your down payment percentage. I'll show you exactly what this adds to your mortgage before you decide.
Default Insurance Is Required
Starting with minimal equity means less cushion if property values shift. This isn't a reason not to buy — but it's a reason to make sure the home you're buying is one you can stay in for a reasonable period of time.
You'll Have Less Equity Buffer
Beyond the mortgage, owning a home involves property taxes, insurance, maintenance, and utilities. Make sure you've budgeted for all of it — not just the down payment and the monthly payment.
The Total
Cost of Homeownership
Legitimate Ways to Buy With Little or No Saved Down Payment
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If you have a parent, grandparent, or immediate family member who is willing and able to give you the down payment, this is fully accepted by lenders in Canada. The key word is give — the funds must be a true gift with no repayment required. The gift giver will need to sign a gift letter confirming this, and the funds must be in your account and documented.
A gifted down payment is one of the most straightforward paths to homeownership for buyers who have family support available. There is no shame in it — it's a legitimate and widely used approach.
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In some cases, you can borrow your down payment — from a personal line of credit, for example — and still qualify for a mortgage. However, there are important rules: the borrowed amount must be fully disclosed to the lender, the payments on the borrowed funds are factored into your debt ratios, and not all lenders accept this approach.
This strategy requires careful planning to make sure the total debt load is manageable. I'll run through the numbers honestly to make sure it works before you commit to anything.
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If you have money in an RRSP, the Home Buyers' Plan allows you to withdraw up to $60,000 tax-free to use as a down payment on your first home. If you're purchasing with a partner who also has RRSP savings, you can each withdraw up to $60,000 — giving you up to $120,000 combined.
The funds must have been in your RRSP for at least 90 days before withdrawal, and you'll repay the amount back into your RRSP over 15 years. This is one of the most powerful tools available to first-time buyers who have been contributing to an RRSP.
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The FHSA is a relatively new account that allows first-time buyers to save up to $8,000 per year — up to a lifetime maximum of $40,000 — in a tax-free account specifically for a home purchase. Contributions are tax-deductible and withdrawals for a qualifying home purchase are completely tax-free.
If you're not ready to buy right now but are working toward it, opening an FHSA immediately and contributing regularly is one of the best financial moves you can make. The sooner you start, the more you accumulate.
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Some lenders offer cash back mortgages — where a percentage of your mortgage amount is returned to you as cash at closing. In some cases this cash can be used toward your down payment, effectively allowing you to get into a home with less money upfront.
These products come with trade-offs — typically a higher interest rate over the term — and not all lenders offer them. I'll walk you through whether this makes mathematical sense for your situation before recommending it.
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Some employers — particularly in sectors that recruit nationally — offer down payment assistance or relocation packages that include funds toward a home purchase. If your employer offers any such benefit, it's worth understanding whether it can be used as part of your down payment strategy.
Frequently Asked Questions — No Down Payment Mortgages
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A true zero-down mortgage is no longer available through regulated lenders in Canada. The minimum is 5%. However, where that 5% comes from — whether it's gifted, borrowed, or withdrawn from an RRSP or FHSA — gives you more flexibility than the minimum requirement alone might suggest.
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Yes — a gifted down payment from an immediate family member is fully accepted by lenders. The gift giver simply needs to sign a letter confirming the funds are a gift and not a loan.
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In some cases yes, but it must be disclosed to the lender and the payments are factored into your debt ratios. Not all lenders accept this, and it requires careful analysis to make sure the overall debt load is manageable. This is a conversation worth having before you do anything.
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Up to $60,000 per person under the Home Buyers' Plan. If you're buying with a partner, you can each withdraw up to $60,000 for a combined maximum of $120,000. The funds must have been in your RRSP for at least 90 days.
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The First Home Savings Account allows you to save up to $40,000 toward your first home, with tax-free contributions and withdrawals. If you're a first-time buyer and don't have one yet, opening one now — even if you're not ready to buy immediately — is almost always worth doing. Every year you wait is contribution room you can't get back.
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Let's talk about it. There may be options — a family gift, an RRSP withdrawal, a short savings plan — that get you there sooner than you think. And if now genuinely isn't the right time, I'd rather tell you that honestly and help you build a realistic plan to get there than put you into a situation that doesn't work.
Still have questions? Take a look at the FAQ or reach out anytime.
The 5% Down Payment — How Far Away Are You Really?
Sometimes the gap between where you are and the minimum down payment is smaller than it feels. Let's look at what 5% actually means in the Medicine Hat market:
For a $350,000 home, the minimum down payment is $17,500. For a $400,000 home, it's $20,000. These are meaningful numbers — but combined with an FHSA, an RRSP withdrawal, a family gift, or even a short focused savings period, they're often more achievable than people initially think.
Part of my job is helping you see the actual path clearly — not just telling you what you want to hear, but not making it sound harder than it is either.
The Right Path Looks Different for Everyone — Let's Find Yours
There's no single answer to getting into a home with minimal savings. What works depends entirely on your income, your existing assets, your family situation, and what's available in the market right now.
What I can promise is an honest conversation — no pressure, no overselling, no telling you what you want to hear if it isn't true. If there's a path to homeownership that makes sense for you right now, we'll find it. And if there isn't, I'll help you build one.