Zero down, properly explained.
The 5% minimum down payment gets borrowed instead of saved. It's a lender-recognized structure, not a loophole — and it costs real money, which is exactly why it deserves real math.
What it is
You qualify for two things at once: the mortgage, and a loan or line of credit that covers the minimum down payment. Because the down payment is borrowed, the mortgage insurer charges its non-traditional premium — the top tier instead of the standard one — and that premium gets added to the mortgage. The sales tax on the premium is paid in cash at closing.
Here's the honest version: this costs more per month than buying with your own 5% down. The real question is whether it costs more than what you're doing now — paying rent while saving toward a target that keeps moving. That comparison is the whole point of the calculator below, and historically, for buyers with strong income and thin savings, the crossover has come sooner than they assumed. In many cases. Not all.
Who it's for
You earn well but saving crawls because GTA rent eats the surplus. Or you have $30–60K set aside and don't want to spend it all on the down payment, leaving nothing for closing costs and a buffer. Or your rent already matches what a mortgage payment would be on a $650K condo in Milliken — you're carrying the cost of owning without the ownership.
- Minimum down payment (borrowed)
- —
- Insurance premium, borrowed-down tier
- —
- Estimated mortgage payment
- —
- Payment you must qualify at (stress test)
- —
Illustrative math, not an approval and not advice. Excludes the down-payment loan's own payment — the full calculator includes it. Qualification always applies. Verify current rates and rules with your lender.
What disqualifies you
- Credit below lender thresholds. Then the move is a 6–12 month repair plan with a date on it — we'll point you at the steps, and rent-to-own may fit in the meantime.
- Income that can't carry the mortgage and the down-payment loan inside the debt ratios. Then run the calculator with your real debts in it. If the ratios fail, a smaller price point or a co-borrower changes the math.
- Self-employed with under two years of documented income. Then the file needs different packaging, not a different you. Talk to us before you assume no.
- A purchase price above the insured-mortgage cap. Then this is 20%-down territory and a different conversation entirely.
The first step
Answer a few questions and we'll tell you whether this program, rent-to-own, or plain patience is the right call for your file. No phone number required to get the routing.
Questions people actually ask
Does zero down mean zero money?
No. The down payment is borrowed, but closing costs are still cash: land transfer tax (less any first-time buyer rebate), legal fees, title insurance, adjustments, and the sales tax on the insurance premium. Budget for them — the calculator itemizes them.
Is it easier to qualify with zero down?
Harder, not easier. You pass the stress test on the mortgage and carry the down-payment loan inside your debt ratios at the same time. Qualification always applies.
What does borrowing the down payment cost?
Two things: the payment on the borrowed funds, and the higher non-traditional insurance premium. The calculator puts both against the cost of continuing to rent while you save, and shows the crossover.
What if prices dip after I buy?
Starting near 95% loan-to-value means a thin equity buffer, and a dip can put you behind temporarily. That's the real tradeoff of this program and it belongs in your decision. Nobody can promise appreciation, and we don't.