Can You Buy a House With No Down Payment in Ontario?

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Why zero-down mortgages do not exist in Ontario, the legal ways to cover a down payment without savings, and the cash you still need.

This guide is for renters in Toronto and the GTA who want to own but have little or no savings. You will get a straight answer on whether a zero-down purchase is possible in Ontario, the legal ways to cover a down payment without your own savings, and the cash you will still need on closing day.

Can you buy a house in Ontario with no down payment?

Not with a regular mortgage. In Canada, every buyer needs a minimum down payment of at least 5% of the price, and lenders will not lend 100% of a home’s value. There is no federal or Ontario program that lets you buy any home on the open market with nothing down.

What you can do is buy without using your own savings. The down payment can come from a borrowed source that a mortgage insurer accepts, a gift from family, your RRSP or First Home Savings Account, or a charity program such as Habitat for Humanity on its own homes. Each route has rules and costs, and some make your monthly budget tighter. The sections below go through them one by one.

What is the minimum down payment in Ontario in 2026?

The minimum is set by price, according to the Financial Consumer Agency of Canada:

• $500,000 or less: 5% of the price.
• $500,000 to under $1.5 million: 5% of the first $500,000, plus 10% of the part above $500,000.
• $1.5 million or more: 20% of the price.

With less than 20% down, you need mortgage default insurance, and the premium is added to your mortgage. CMHC’s premium is 4.00% of the loan when you put down the 5% minimum. A 30-year amortization, which is open to first-time buyers and buyers of newly built homes on insured mortgages, adds 0.20 points. For the full math at every price, see my guide to the minimum down payment in Ontario.

How much cash do you still need if your down payment is covered?

Even if a gift or a loan covers your whole down payment, closing day brings other bills. Two of them surprise people. Ontario charges 8% retail sales tax on the mortgage insurance premium, and CMHC says that tax cannot be added to the loan. Land transfer tax is also due in cash, although first-time buyers get a refund of up to $4,000 from Ontario.

Source: my calculations using FCAC minimum down payment rules, CMHC premium rates (25-year amortization, standard down payment), Ontario’s 8% retail sales tax on insurance premiums and Ontario land transfer tax rates, as of November 2026. Legal fees, title insurance, adjustments and moving costs are extra.

Inside the City of Toronto, you also pay the municipal land transfer tax, with a first-time buyer rebate of up to $4,475. And remember that the deposit you hand over when your offer is accepted is part of your down payment, not an extra cost. If that is confusing, read deposit vs down payment in Ontario.

Can you borrow your down payment in Ontario?

Yes, in limited cases. CMHC accepts what it calls non-traditional down payments, such as an unsecured personal loan or unsecured line of credit, under these conditions:

• The home has one or two units.
• You are borrowing 90.01% to 95% of the value, which means a down payment of 5% to just under 10%.
• You have a strong history of managing credit, and at least one borrower or guarantor has a credit score of 600 or more.
• The money is at arm’s length and not tied to the sale. A seller or builder cannot quietly lend it to you.
• You are not a non-permanent resident. Work permit holders cannot use this route.

The cost is higher. CMHC charges a 4.50% premium on these loans instead of 4.00%. On a $520,000 mortgage, that difference is $2,600 more added to your loan, plus 8% sales tax on the higher premium.

The bigger cost is monthly. The payment on the loan you used for the down payment counts as a debt when the lender checks your total debt service ratio, which CMHC caps at 44% of gross income. That payment shrinks how much mortgage you qualify for. Each lender decides whether to offer this option at all, so ask before you count on it.

Can family gift you the down payment?

Yes. CMHC lists a non-repayable financial gift from a relative as a traditional down payment source, the same as your own savings. Lenders will usually ask for a signed gift letter saying the money does not have to be paid back, and proof that the money is in your account before closing.

A gift is often the cheapest way to buy with little savings of your own, because there is no loan payment to hurt your qualifying ratios and no higher premium. My guide to the gifted down payment and gift letter covers what lenders need.

How can RRSP and FHSA savings cover your down payment?

If you have been saving through work or on your own, two federal programs can turn that into a down payment.

• RRSP Home Buyers’ Plan. The Canada Revenue Agency says you can withdraw up to $60,000 from your RRSP to buy a qualifying home. You pay it back over 15 years. For first withdrawals made from 1 January 2026 to 31 December 2028, repayments start in the fifth year after the withdrawal year.
• First Home Savings Account (FHSA). You can contribute $8,000 in the year you open it, carry forward up to $8,000 of unused room, and contribute up to $40,000 in total. Contributions are generally tax deductible, and qualifying withdrawals to buy a first home are tax-free. You must be a resident of Canada and a first-time home buyer to open one.

If you are buying with a partner, check whether each of you qualifies on your own, because the limits apply per person. If you are deciding which program to use first, read FHSA vs Home Buyers’ Plan.

Are there programs in the GTA that need no down payment?

Yes, but only on specific homes. Habitat for Humanity GTA says most of its homes require no down payment, with the exception of one community that needs a small one. Habitat sizes your first mortgage to what you can afford, with housing costs starting at no more than 32% of your total income, and provides a second mortgage to cover the gap.

The trade-off is eligibility and choice. Habitat asks for at least three years of employment history in Canada, stable income, no recent bankruptcy or consumer proposal, and proof that you cannot buy through the regular market. You buy one of Habitat’s homes, not any house you like, and spaces are limited. For the full list of GTA programs and what each one requires, see down payment assistance in the GTA.

What about rent-to-own, vendor take-back or a co-signer?

These come up often, but none of them truly removes the down payment.

• Rent-to-own. You rent with an option to buy later, and part of your rent may build a credit toward the price. When you buy, you still need a mortgage and a down payment, and if you cannot qualify, you may lose what you paid in. My guide on how rent-to-own works in Ontario covers the risks.
• Vendor take-back mortgage. The seller lends you part of the price. It does not replace the minimum down payment your mortgage lender requires, and your lender has to accept any second loan on the home, so ask first.
• Co-signer or guarantor. A co-signer can help you qualify for the mortgage by adding income or credit, but they do not replace the down payment.

Is buying with no money down a good idea in 2027?

It can work, but it leaves you with very little room for error. With 5% down and a 4.00% premium added to the loan, you start with almost no equity. GTA prices have also been falling. TRREB reported the average GTA price was about 5% lower in September 2026 than a year before. If prices dip after you buy and you need to sell early, you could owe more than the home is worth after selling costs.

Rates are moving too. The Bank of Canada raised its policy rate to 2.50% on 28 October 2026, and the big banks raised prime to 4.70%. A borrowed down payment adds a second loan on top of a larger mortgage, just as borrowing costs are rising.

What to do next

1. Use the affordability tool above to see what price range your income supports.
2. Work out your minimum down payment and closing cash using the table above for your price.
3. List every possible source: savings, FHSA, RRSP, a family gift, and only then a borrowed down payment.
4. Ask two lenders whether they offer CMHC’s borrowed down payment option and how the loan payment affects your approval.
5. Get a full pre-approval in writing before you start viewing homes.

Frequently asked questions

Sources

• Financial Consumer Agency of Canada: Down payment
• CMHC: CMHC Purchase (down payment sources, borrowed down payments, GDS/TDS)
• CMHC: Mortgage loan insurance cost (premiums and provincial sales tax)
• Canada Revenue Agency: What is the Home Buyers’ Plan
• Canada Revenue Agency: Contributing to your FHSA
• Habitat for Humanity GTA: How it works
• Ontario Ministry of Finance: Calculating land transfer tax
• Ontario Ministry of Finance: Retail sales tax (8% on insurance premiums)

Related reading

• Biggest Condo Developers in Toronto: Track Records Buyers Should Check
• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• How Much House Can I Afford on a $100,000 Salary in the GTA? (2027)