Zero down
mortgage

If you have zero down saved you can still get a mortgage and buy a home!

Yes these still exist! Contrary to what you may have heard, if you don’t have the full 5% down payment saved then you may access Genworth’s borrowed down payment program. Canadians with zero down can mortgage a home years ahead of schedule, build equity ,and no longer pay their landlords mortgage. These mortgages are:

  • affordable, flexible and offer a discounted mortgage rate
  • offer significant savings compared to waiting
  • perfect for a growing family who require a bigger home
2.89%
Fixed Rate

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

Calculate your estimated pre-approval with a zero down mortgage

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Compare the savings and costs of a
zero down mortgage

Depending on your personal situation, the zero down mortgage may benefit you significantly, especially if your current rent is high and your savings are low. Use our calculator to compare the rough costs with the potential benefits and see if it makes sense. The largest benefit of this mortgage is the equity earned from owning a home and paying down your own mortgage, as opposed to your landlord’s. Another significant benefit, although a more intangible one, is the length of time it would have taken to save up the 5% down payment.

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

HOME APPRECIATION

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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.

TIME TO PURCHASE

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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.

HIGHER GENWORTH FEE

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

DOWN PAYMENT INTEREST

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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

Learn more about the zero down mortgage with our two minute video, detailing more of the process, the costs and benefits. Why read when you can watch a video is out motto. On a side note: our video guys animated a rolling human piggy bank - it’s ok, we don’t understand what that’' suppose to be either.

For more videos visit us at:  

Provider or the Zero Down Mortgage program

Genworth Canada is the nation’s second largest mortgage default insurance provider. They understand that sometimes saving the required down payment for a new home can be challenging. Genworth Canada Borrowed Down Payment mortgage insurance program helps make it possible for homebuyers with zero down payment saved to start building equity in their own home.

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

How zero down payment
mortgages work

This type of product is a full-service mortgage product , meaning we, as mortgage brokers, will complete each step for you - start to finish. The great news is our services are absolutely free, as the mortgage lender compensates us at no additional cost to you. So the first step when applying for a zero down mortgage via Genworth’s Borrowed Down Program is to confirm all applicants, who’s income is required to support the mortgage, have good credit history and a credit score over 680.

What if my credit is below 680?

Don’t despair, as a full service brokerage we want to help. Please use our online contact form to first input your information, then select your down payment, and finally your current credit situation (eg. I have fair credit, bankruptcy, etc.). One of our mortgage specialists will receive your inquiry and respond by email letting you know what exactly you need to do, and not do, with your credit. In most cases, it will take time to build up credit but what’s most important is to understand the quality of your credit. Mortgage applications, especially for zero down mortgages, require a higher quality of credit than credit cards and ,especially, car loans. Quite often we hear from our client’s 'I just got a car loan and they told me I have good credit, ' unfortunately car loan credit and mortgage credit criteria are worlds apart and a first-time home buyer should never rely on a car dealership’s credit pull to determine where they stand on credit.

On a side note consumers will sometimes refer to flexible down payment mortgages as 0 down mortgage or also as No Down Payment Mortgage.





In the end, your credit score is derived from a proprietary algorithm - specifically the Equifax Beacon 9.0 - and while we don’t know the exact formula, from previous applications we do know that missed payments and high credit utilization will degrade your score significantly. And while maintaining regular payments is obvious to most, what is not so well understood by homebuyers is credit utilization. This is disconcerting, considering that high utilization can reduce one’s chances of approval for a zero down mortgage to nothing. So long story short: buy your home first, then finance your vehicles.

I’m told these don’t exist anymore

We hear this comment often from our first-time mortgage applicants looking for a zero down mortgage option. They were likely told this by their bank, who, prior to OSFI’s B-20 and B-21 mortgage regulation change - this branch of the federal government regulates the mortgage and banking industry, offered what was once called Cash Back Zero Down mortgages. This type of zero down was no longer permitted to be offered by the banks - a good thing considering they were extremely expensive for first-time homebuyers.

As such, many lenders existed the zero down market and chose not to offer anything, leaving their bank and branch staff to assume zero down or borrowed down payment mortgages no longer existed any lender. This assumption is incorrect; there are banks and lenders who still offer flexible down payment options, and we have access to all of them!

Find zero down payment options near you