The 0 down
mortgage program

If you have 0 down payment saved you can still get a mortgage a buy a home!

It’s true! Although the 0 down mortgage program was modified by the federal government in 2015, a homebuyer with limited savings can still purchase a home using borrowed funds for the 5% down payment. Why rent when you can own now, start building equity, and have a mortgage that

  • is affordable, flexible and offers a discounted mortgage rate
  • offers significant savings compared to waiting
  • is perfect for a growing family that requires a bigger home
Fixed Rate

OAC. Rates subject to change without notice
Calculate pre-approval What are the costs? 0 Down Video

Calculate your estimated pre-approval using a 0 down mortgage

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Compare the savings and costs of the
0 down mortgage program

There are two significant benefits and costs associated with a 0 down mortgage where the down payment is borrowed. The two benefits are: time saved and home equity. Depending on your personal situation, it may take several years to save up the full down payment. While 'time saved' is an intangible benefit, it’s certainly a bonus to own a home of your own years ahead of schedule. The second benefit of the 0 down mortgage is equity earned via home appreciation and principal pay down of your mortgage, a tangible benefit that would otherwise go to one’s landlord.

The two primary costs of the borrowed down mortgage are Canada Guaranty’s slightly higher insurance premium, and the additional interest cost from the down payment.



This is the estimated amount of home equity you may gain - or miss out on - during your down payment savings period. We used average inflation of 3% to calculate the home appreciation.



This is how long it will take you to save up the full 5% down payment or, on the flip side, the benefit of owning your own home years sooner even with zero down payment.



For every $100,000 borrowed Canada Guaranty charges a slightly higher, one-time premium of $250 for the Flexible down payment mortgage.



This is the cost of the borrowed 5% down payment, as the bank and seller of the property will still require a deposit, this amount is calculated using a rough interest rate of 7% over five years.

in a Nutshell

Discover how this 0 down mortgage program works, the benefits, the restrictions and more. As we say, why read when you can watch a video. On that note, the animated rolling human is supposed to be a rolling piggy bank. Not sure what our animators were thinking to be honest.

For more videos visit us at:  

Provider or the 0 Down Mortgage program

Canada Guaranty is Canada’s largest private mortgage default insurance provider. In their words: The combination of rising home prices, increasing taxes and unforeseen expenses related to homeownership can make saving for a down payment very difficult. However, with help from a lender or mortgage professional, along with the solutions provided by Canada Guaranty, your dreams of homeownership are well within reach. Find out how mortgage insurance can help unlock the door to your dream home, even sooner.

For more information download Canada Guaranty’s mortgage program built for individuals with 0 down saved.

How 0 down
mortgages work

When you click on the 'Contact Us' button, we’ll collect not only your information but also ask you 'How you would rate your credit'. This information is then forwarded to a mortgage broker for review, and within a few minutes they’ let you know what your 0 down mortgage options are based on your down payment and credit. If it appears you qualify for the 0 down mortgage program we’ll invite you to forward your income confirmation and information so we may verify your income, credit and ulitmately what purchase price you might qualify for.

The 0 down payment mortgage portion.

Since you don't have the down payment saved we will have to provide you with one, and for that we will guide you to set up a loan or interest only line of credit for the deposit. This borrowed down payment will be flexible and as you would have saved up for the down payment you simply pay this amount off instead - the bonus is you are already living in a home of your own.

On a side note consumers will sometimes refer to flexible down payment mortgages as No Down Payment Mortgage or also as Zero Down Mortgage.

I thought 0 down mortgages went away

This is partially correct, prior to the Government of Canada’s mortgage legislation change of 2015, the major banks offered a Cash Back 0 down mortgage. With this type of mortgage the bank provided the down payment but then charged a significantly higher interest rate on the mortgage. The effective interest rate of that borrowed 0 down payment was anywhere from 18% to 25% - an extremely expensive options in our opinion.

However, the legislation change of 2015 effectively eliminated the cash back mortgage, which was good news for first-time home buyers who were unaware they were paying so much for this type of 0 down mortgage. What was left after the chance was the Flex 0 down mortgage program - this allowed the home buyer to borrow their down payment using a loan or line of credit. At interest rates of 4% to 8% this type of 0 down mortgage was far less expensive than the bank option. In the end, most Canadian Banks discontinued their flexible down payment programs save for a few - and we have access to all of them. Contact us for help in setting up a 0 down mortgage.

Find no down payment options near you