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No Down Payment? 5 Ways You Could Still Buy a Property

5 Ways to Buy a Home Without a Down Payment

About 35% of Canadians are not homeowner1, yet there are still ways to access homeownership without the typical 5% to 10% down payment. Discover how in this article.


How can you buy a home without a down payment?
This is a question many prospective buyers ask, as entering the real estate market can be quite a challenge.

1. Use a Line of Credit or Personal Loan

A line of credit or personal loan can be used as a down payment for a mortgage. A personal loan often offers more flexible repayment terms and generally lower interest rates2. However, this option can impact your debt ratio and may be declined if your credit profile is not strong.

2. Withdraw Funds from Your RRSP

The Home Buyers’ Plan allows first-time buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) tax-free.

Key conditions include:

The amount must be repaid within 15 years
Funds must have been in the account for at least 90 days
You must not have owned and occupied a property in the last 4 years3

If your RRSP balance is insufficient, you may apply for an RRSP loan under certain conditions4. Both the mortgage and RRSP loan must be approved.

3. Get Help from a Loved One

“Love money” from a friend or family member can be an option, but it must be a non-repayable, interest-free gift5.

Another alternative is a loan secured by a relative, where their home equity is used as collateral6.

4. Buy with One or More Partners

The down payment can be shared between multiple buyers, which is common for couples or real estate investors looking to divide financial responsibilities.

5. Receive a Gift of Equity

Buying a property from a close relative may allow you to benefit from a gift of equity and purchase the home at a reduced price. In some cases, this can also help you avoid paying property transfer taxes7.

A mortgage broker can help you better understand these financing options and guide you toward the solution best suited to your situation. Don’t hesitate to consult one if you have any questions or uncertainties. ?


[1]https://www.multi-prets.com/fr/apprendre/5-facons-d-acheter-sans-mise-de-fonds/

[2]https://hypotheques.ca/blogue/acheter-une-maison-sans-mise-de-fond

[3]https://www.canada.ca/fr/agence-revenu/services/impot/particuliers/sujets/reer-regimes-connexes/est-regime-accession-a-propriete/comment-participer-regime-accession-a-propriete.html

[4]https://www.multi-prets.com/fr/apprendre/5-facons-d-acheter-sans-mise-de-fonds/

[5]https://hypotheques.ca/blogue/acheter-une-maison-sans-mise-de-fond

[6]https://www.excel-finance.ca/fr/acheter-une-maison-sans-mise-fonds/

[7]https://www.excel-finance.ca/fr/acheter-une-maison-sans-mise-fonds/


Source: Centris.ca