No Down Payment?

So, you want to buy a house, but you don't quite have the down payment you need?  I hear this quite often and I recently sat down with a mortgage broker to talk about how someone in this situation can get into a house and start building equity.  Following are the 3 things he explained to me.

  1.  You can be gifted the money for a down payment from a friend or family member.
  2. You can borrow the amount needed from the bank
  • you will need 5% down (CMHC mortgage) plus another 2% (roughly) for closing costs
  • you will need a good credit score 
  • there are 2 ways to borrow from the bank
    • a loan for the amount needed (this will be a short term loan - 5 years usually)
    • a Line of Credit for the amount needed

3.  You can be creative with your own resources

  • you can use money from your RSPs (which you will repay over time)
  • if you have a car that’s paid for, some banks (like RBC) will put a lien (loan) on your car and give you cash to use for the down payment.


Lenders look for 3 things:

  1. can you afford this?
  2. are you credible?
  3. do you have access to the down payment?


I would highly recommend you talk to a mortgage broker about your options.  They will almost always be cheaper than the retail banks are and may have some great advice and creative solutions to help get you into a house sooner.  

Sometimes it's helpful to know what types of properties are in your grasp.  Feel free to download my mortgage app to help understand what you can afford.  It allows you to enter details about a property and know what fees are applicable on it.  It also allows you to play with interest rates and gives you an overall monthly payment.  Follow this link and set up an account to access it's powerful features.

If you still have questions, call me!  I welcome any and all questions!

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Jacqui Broesky

Jacqui Broesky

CENTURY 21 Gold Key Realty Ltd.
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