Can you buy a house with zero down in Ontario?
Short answer: no. The minimum down payment is 5%, and it is a federal rule, not your lender’s choice.
You might be worried you will never save that much. You have more options than the “zero down” ads show, and some cost more than they admit.
This page is information, not mortgage advice. Rules here were checked on Canada.ca and CMHC on October 6, 2026. Your mortgage broker confirms what applies to you.
The Bottom Line (Quick Answer)
- There is no zero-down mortgage in Canada. You need at least 5% down.
- Some insurers let you borrow that 5%, if your credit is strong. It costs you more each month.
- The Ken Small Real Estate Team helps buyers in London, Ontario plan a down payment. We work with brokers we trust.
The short version
- The minimum down payment is 5%, and it is a federal rule, not your lender’s choice.
- Some insurers accept a borrowed down payment, if your credit is strong.
- The loan payments count against your debt ratios.
What is the minimum down payment in Canada?
It is 5% on a home of $500,000 or less. Above that, the rate steps up:
| Home price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| $500,000 to $1.5 million | 5% of the first $500,000, plus 10% of the rest |
| Over $1.5 million | 20% of the price |
Source: Financial Consumer Agency of Canada (new tab). Insured mortgages are capped at a $1.5 million purchase price, since December 15, 2024.
No lender can go below that on an insured mortgage. If someone tells you they can, ask which insurer.
Can you borrow your down payment?
Sometimes, yes. Normally, the minimum down payment must come from your own money. But some insurers accept a borrowed one, if your credit is strong.
CMHC, the federal insurer, calls it a “non-traditional” down payment. Here are its rules:
- It can be an unsecured personal loan or an unsecured line of credit.
- It must be arm’s length, and not tied to the purchase or sale of the home.
- It is for 1- or 2-unit homes, with a loan-to-value of 90.01% to 95%.
- You need a strong credit history.
Source: CMHC (new tab).
Canada Guaranty, a private insurer, has a borrowed down payment product called Flex 95 Advantage. Ask your broker which lenders and insurers will take it for you.
What does not count: builder incentives, real estate agent incentives, or anything tied to the price of the property. Those are not arm’s length.
What does borrowing your down payment cost you?
This is the part the “zero down” ads leave out.
- The loan payments count against you. Payments on the borrowed down payment are included in your debt calculations. The money does not appear from nowhere.
- You are financing the whole purchase across two debts. A mortgage and a loan, both due every month.
- You start with almost no cushion. If values dip, you have no equity to absorb it.
Which programs help with a down payment in Ontario?
- First Home Savings Account (FHSA) — save up to $40,000 toward a first home. You get $8,000 of room the year you open it.
- RRSP Home Buyers’ Plan — take up to $60,000 out of your own RRSP for a first home.
- Ontario land transfer tax refund — up to $4,000 for eligible first-time buyers. That means no land transfer tax on the first $368,000. London adds no city land transfer tax; only Toronto does.
- 30-year amortization — open to all first-time buyers and all buyers of new builds. It applies to insured mortgages, since December 15, 2024.
- GST/HST rebate on a new home — up to $50,000 for first-time buyers.
Who qualifies, and the source for each one, is on our first-time home buyer page.
Is the First-Time Home Buyer Incentive closed?
The First-Time Home Buyer Incentive was the federal shared-equity program. CMHC took its last new applications on March 21, 2024 (source: CMHC, new tab).
Some websites still list it. If a page still offers it, that page is out of date.
What does it cost to buy a home with us?
$495 to start. Our 3% commission is paid from the seller’s side of the deal. If a seller offers our brokerage less than 3%, you never pay the difference. It is all in your Buyer Representation Agreement, before you sign. What it costs to buy a home with us.
When we represent you, any home you buy comes with a 1-Year Canadian Home Shield SafeClose™ Warranty. Up to $15,000 of protection, with a $100 deductible, paid for by us. It also comes with a Love Your New Home Guaranteed or I’ll Sell It For Free certificate.
The whole deal, in plain English. If within 24 months the home isn’t right, we list it for free: 0% listing-side commission. That applies when you buy your next home with us, one of equal or greater value. You remain responsible for the buyer’s agency fee. See every guarantee.
Who this is not for
If you want an agent who opens doors and stays quiet, we are probably not your team. We push back on a bad house. We run the numbers out loud. And we will talk you out of a home that is wrong for you.
What London buyers say about the Ken Small Real Estate Team
★★★★★“All the way from the start of the house search, Ken was there to help at every step. From setting up search criteria that exactly met our needs, to getting viewings scheduled, to providing honest feedback about the properties (which is often rare for most agents); Ken went above and beyond our expectations. 10/10 experience with Ken.”
J H · Buyer · Apr 2023 · via Google
All testimonials and Google reviews are verified, unedited statements from actual past clients of the Ken Small Team.
4.9 average from 14 Google reviews, as shown on our reviews page (October 2026). Read every review →
The honest takeaway
If borrowing the down payment would stretch you too thin, we will say so. Waiting a season can be the smarter move.
Common questions about buying with no money down in Ontario
Can you buy a house with zero down in Ontario?
Can I borrow my down payment?
Can the builder or my agent give me the down payment?
How do I buy a house with no money down in Ontario?
What is the smallest down payment I can make in Canada?
Is there a no down payment mortgage in Canada?
How much does a first-time home buyer need in Ontario?
Is the First-Time Home Buyer Incentive still available?
Should I borrow my down payment?
This page is information, not mortgage advice. Rules and products change. Your mortgage broker confirms what applies to you.
Get pre-approved before you shop
We will point you to a broker we trust for a proper pre-approval. Then we build your search around a budget you can stand behind. Fire us any time before you make an offer. Only the $495 retainer stays with us, because that work is done.
About Ken Small
Ken Small, REALTOR®, has been a real estate agent in London since 2003. He leads the Ken Small Real Estate Team at Century 21 First Canadian Corp., Brokerage. The office is at 420 York Street, London, ON N6B 1R1. RECO #4727293. Meet the team →