Zero Down payment Mortgage in Canada
Your Guide to Homeownership with No Savings
Many Canadians dream of owning a home but feel stuck because they haven’t been able to save for a down payment. The good news? You may still qualify to buy a home with little or no savings.
What is a Zero Down Payment Mortgage?
Zero Down payment Mortgage comes in, also known as the Flex Down Program.
This option allows eligible buyers to borrow their down payment from another source—like a line of credit or personal loan—while still qualifying for a traditional mortgage.
If you have good income and a strong credit history, this could be your path to homeownership.
📞 Call Jose Delgado at Mortgage Alliance of Canada today for a free consultation to find out if this program is right for you!
How the Flex Down Program Works
In Canada, most mortgages require a minimum down payment of 5% of the home’s purchase price. With the Flex Down Program, that 5% can come from borrowed funds. Here’s how it works:
- You take a loan or line of credit for the 5% down payment
- Your mortgage application includes this loan as part of your debt
- You must still qualify under standard rules for income, credit, and debt ratios
The key is that you need to show you can afford the mortgage payments AND the payments on your borrowed down payment.
Who Can Qualify for a Zero Down payment Mortgage?
This program is best suited for:
- First-time homebuyers with stable jobs
- Clients with strong credit scores (typically 650+)
- Individuals with low debt and high income
- Renters who can show a good payment history
📞 Contact Jose Delgado today to see if you qualify – it only takes 30 minutes to review your situation!
Acceptable Sources for Borrowed Down Payment
Lenders allow the following sources for a Flex Down payment:
- Unsecured line of credit
- Credit card cash advance (not recommended due to high interest)
- Personal loan from a bank
- Loan from an employer (if structured formally)
The funds must be in your bank account before closing, and you need to prove you can afford the extra debt.
Benefits of a Zero Down payment Mortgage
- Start building equity sooner
- Avoid rising rent costs
- Access to homeownership without waiting years to save
If you’re paying $2,000/month in rent, that money could be going toward your own mortgage instead. Jose Delgado can show you how.
Things to Consider Before Applying
While the program can help you get into a home sooner, there are a few things to keep in mind:
- Higher total monthly payments (mortgage + loan)
- Need for good credit and job stability
- CMHC or mortgage insurance still applies
Jose Delgado will review your entire situation and help you understand all the pros and cons.
What Are the Mortgage Insurance Rules?
All mortgages with less than 20% down require mortgage default insurance from:
- CMHC (Canada Mortgage and Housing Corporation)
- Sagen
- Canada Guaranty
The insurance premium is based on the total loan amount and is added to your mortgage. The premium will be slightly higher for borrowers using Flex Down, but it allows you to buy sooner.
Example of a Zero Down payment Purchase
Let’s say you want to buy a $400,000 home:
- Required down payment: 5% = $20,000
- You borrow $20,000 through a personal loan
- Your lender qualifies you based on both the mortgage and loan payments
If your finances check out, you’re approved to buy—no waiting years to save.
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Frequently Asked Questions (FAQ)
Can I use a credit card for the down payment?
Technically yes, but it’s not ideal due to high interest rates. A low-interest line of credit or personal loan is better.
What credit score do I need?
Most lenders want to see a score of at least 650 for a Flex Down mortgage.
Can I use this program if I’m self-employed?
Yes, but your income must be provable and you’ll need strong documentation. Jose Delgado can guide you through this.
Are there limits to the home price?
Yes, insured mortgages must fall under CMHC maximums, which vary by region. Jose can help you check local limits.
Will my mortgage rate be higher?
Not always. If your credit is strong and you’re borrowing from a reputable source, rates can be competitive.
How to Apply for a Zero Down payment Mortgage
Applying is simple. Here’s how to start:
- Book a 30-minute consultation with Jose Delgado
- Review your credit, income, and budget
- Identify the best way to borrow your down payment
- Submit your application with the right documents
Jose works with major banks and credit unions that offer Flex Down programs and knows how to match you with the right lender.
Why Work with Jose Delgado – Mortgage Alliance of Canada
- 15+ years helping first-time buyers across Ontario and Alberta
- Expert in Flex Down and Zero Down payment programs
- Bilingual service (English & Spanish)
- Access to major banks, credit unions, and specialty lenders
Jose believes in educating clients—not selling them. He’ll walk you through every step with clarity and patience.
Start Your Homeownership Journey Today!
If you’re tired of renting and have good credit and income, the Zero Down payment Mortgage might be the solution you’ve been waiting for.
📞 Call Jose Delgado at Mortgage Alliance of Canada now for your free, no-obligation 30-minute consultation.
Let’s turn your homeownership dream into a reality—even if you haven’t saved a penny for a down payment!
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