How to Buy a Home With No Down Payment

How to buy a home with no down payment might sound impossible, but there are legitimate pathways for Alberta homebuyers to achieve homeownership without traditional savings. While most buyers need at least 5% down, certain programs and strategies can help you get into your first home sooner than you think. Here’s what you need to know about buying in Airdrie, Cochrane, and throughout Alberta.

Use the Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their RRSP ($120,000 for couples) tax-free to use toward a down payment. If you’ve been contributing to an RRSP, this money can effectively become your down payment without requiring additional cash savings. You have 15 years to repay the funds to your RRSP. This is one of the most popular ways Albertans access homeownership without upfront savings.

Gifted Down Payments

Canadian mortgage lenders accept gifted down payments from immediate family members. If parents or grandparents are willing to help, they can provide the required 5% minimum down payment as a gift (not a loan). Lenders require a gift letter confirming the funds don’t need to be repaid. This approach is common in Alberta’s competitive markets where family support makes homeownership accessible.

Flex Down Payment Programs

Some Alberta lenders offer flex down payment programs where they loan you the down payment, which you repay through your mortgage. These programs typically require strong credit (680+) and stable income. While you’ll pay a higher interest rate on the borrowed portion, it eliminates the need for upfront savings. At Property Sisters, I can connect you with lenders who offer these specialized programs in the Airdrie and Cochrane areas.

Employer Assistance Programs

Some Alberta employers offer down payment assistance as part of recruitment or retention packages, particularly in industries facing worker shortages. This might include forgivable loans or matching contributions. If you work for a large employer, municipality, or healthcare facility, ask your HR department about homeownership assistance programs.

Consider Alternative Lenders

Credit unions and alternative lenders sometimes offer more flexible down payment requirements than traditional banks. While interest rates may be slightly higher, they can provide solutions for buyers with strong income but limited savings. I work with multiple lenders who understand the local market and can find creative financing solutions.

Working With Property Sisters

At Property Sisters, I help buyers explore every available option for how to buy a home with no down payment. I’ll review your financial situation, connect you with mortgage professionals who specialize in low and no down payment solutions, and find properties within your approved budget. My knowledge of Airdrie and Cochrane markets ensures you’re making smart investment decisions even when using creative financing.

Important Considerations

Remember that even with no down payment, you’ll need funds for closing costs (2-4% of purchase price), home inspections, legal fees, and moving expenses. You’ll also pay mortgage default insurance through CMHC, which protects lenders when down payments are under 20%.

Buying a home with no traditional down payment is possible in Alberta with proper planning and professional guidance. Let’s explore which options work best for your situation.