In 2025, 72% of millennials said that saving for a down payment is the biggest hurdle when buying a home.
If you’re one of them, you’re not alone! But did you know buying a home in Canada with $0 down is still possible?
It’s true!
The no down payment mortgage Canada 2025 landscape has changed, and there are several options for first-time buyers to make homeownership a reality without needing a huge upfront payment.
Whether you dream of a condo or a house, there are ways to make it happen.
Let’s learn about Canada’s first-time home buyer programs and creative strategies that could help you get into your new home.
2025 Programs for $0 Down Payment
The government knows people are struggling to save. That’s why they’ve improved several programs in 2025 to make home buying easier.
1. First-Time Home Buyer Incentive (FTHBI)
This is one of the most popular first-time home buyer programs in Canada.
How it works in 2025:
- Get 10% help for condos
- Get 5% help for new houses or townhomes
- No interest, no monthly payments on this amount
Sounds great, right? Well, there’s a catch…
The government owns part of your home (shared equity). That means when you sell, they get back their share of the increased value.
Still, this can help reduce your mortgage and lower monthly costs!
2. Indigenous & Veteran Programs
In 2025, there are more support programs for specific groups.
- Indigenous buyers may qualify for $0 down loans through First Nations housing programs.
- Canadian Veterans can access full mortgage loans through military housing support.
These are great options if you’re eligible. No down payment is required. Curious about home building expenses? Discover the cost per square foot to build a house in Ontario in 2025 and plan your dream home.
What are the Other Creative Workarounds?
Not everyone fits into government programs. But you still have options. Let’s talk about creative ways people are buying homes in Canada with zero down in 2025.
1. Gifted Deposits
Got generous parents or close family?
In Canada, family members can gift you money for a down payment—tax-free. It’s common for parents to give $50,000 or more to help their kids get started.
Tip: Ask your lender what documents they need to prove it’s a gift and not a loan.
2. Rent-to-Own Homes Canada
This is becoming super popular in 2025.
Here’s how rent-to-own works:
- You rent a home for 2–5 years
- A portion of your rent goes toward buying the home
- After that, you buy it at a pre-agreed price
You don’t need a big down payment now. Just pay rent like normal, but with a plan to own in the future.
Good news: Even if you have bad credit, this gives you time to fix it while still working toward owning.
Can I buy a house with bad credit and no down payment?
Yes, but it’s harder. Most banks say no. But some alternative lenders might say yes—if you have stable income or a co-signer. Be careful, though—interest rates are higher.
Also, you can explore stunning waterfront living at Lakeview Village in Mississauga. Discover new condos, parks, and vibrant community spaces perfect for families and first-time buyers.
Know the Risks & Alternative Options
Now, let’s be honest. Buying a house with no down payment comes with a few risks.
1. Higher Monthly Payments
When you don’t put anything down, your mortgage is bigger. That means bigger monthly payments and more interest paid over time.
Also, you might need to pay for mortgage insurance, which adds even more cost.
That’s why it’s smart to compare all your options.
2. Save a Small Down Payment with FHSA
A better option? Save 5% down using the First Home Savings Account (FHSA).
What’s FHSA?
- You can save up to $40,000
- Tax-free withdrawals when used to buy your first home
- Contributions reduce your taxable income
Even saving $200 a month adds up fast. And once you reach 5% down, your mortgage payments will be lower, and you’ll pay less interest.
Conclusion
Buying a home in Canada with zero down payment is not impossible in 2025. There are programs, gifts, and rent-to-own deals that make it possible—even for students and first-time buyers.
Remember:
- Use no down payment mortgage Canada 2025 options if you qualify
- Explore first-time home buyer programs in Canada like the FTHBI
- Consider rent-to-own homes if you need time
- Save with the FHSA if you want more control
Owning a home is still a dream worth chasing. Just make sure you choose the right path for your budget and lifestyle.
If you’re curious about home prices or new options, check out new condos in Mississauga for potential opportunities.
