Buying your first home in Edmonton with little or no money saved for a down payment? It can be possible — through borrowed down payment programs, gifted funds, the RRSP Home Buyers’ Plan, and the First Home Savings Account (FHSA). Anh Lang of TMG Mortgages (780-446-1271) will explain in general terms how these paths work, who they suit, and what’s still required. Note: every option below is subject to lender and insurer approval — no one can promise you’ll be approved, and 100% financing is never guaranteed.
How Buying with Little or No Money Down Works in Canada
Canada’s mortgage rules require a minimum down payment, but that money doesn’t have to come entirely from your own savings. Several accepted sources can make up your down payment, and some can be combined. The key is that the source must be acceptable to the lender and the mortgage insurer — and the total borrowing still has to meet affordability guidelines.
Borrowed Down Payment (Flex Down) Programs
Some lenders offer flex down payment programs, where your down payment is borrowed — for example, through a line of credit — rather than saved. The borrowed amount counts as debt in your affordability calculation, so your income needs to support both the mortgage and the down payment loan. These programs have specific rules and are subject to lender and insurer approval.
Gifted Down Payments from Family
A gift from an immediate family member is one of the most common ways first-time buyers reach their down payment. Lenders typically require a signed gift letter confirming the money doesn’t need to be repaid, plus a paper trail showing the transfer. Gifts from outside the immediate family are treated more cautiously.
RRSP Home Buyers’ Plan
The federal Home Buyers’ Plan lets qualifying first-time buyers withdraw from their RRSPs toward a home purchase, to be repaid over time under the program’s rules. It can be a useful bridge if you’ve been contributing to an RRSP — but the withdrawal must meet the program’s conditions, and the repayment schedule becomes part of your financial picture.
First Home Savings Account (FHSA)
The FHSA combines tax-deductible contributions (like an RRSP) with tax-free withdrawals for a qualifying first home purchase (like a TFSA). For Edmonton buyers with a few years before purchasing, contributing to an FHSA can build a down payment more efficiently than a regular savings account — subject to annual and lifetime contribution limits set by the program.
Closing Costs Still Apply
Even with minimal money down, you’ll still need funds for closing costs: legal fees, title insurance, property tax adjustments, home inspection, and moving expenses. Lenders want to see you can cover these on top of the down payment. Budgeting for them early avoids last-minute surprises — see Edmonton Mortgages for what’s typically involved.
Who These Paths Generally Suit
- Buyers with stable income and good credit but limited savings
- Buyers with family able to gift part of the down payment
- Buyers with RRSP savings who qualify for the Home Buyers’ Plan
- Buyers with a few years to save using an FHSA
Every path is subject to lender and mortgage insurer approval based on your full financial picture. Anh will give you an honest read on which options fit your situation — and which don’t.
Frequently Asked Questions
Can I really buy a home with no money down?
In some cases, yes — through flex down payment programs or gifted funds. But “no money down” never means “no money needed”: closing costs still apply, and everything is subject to lender and insurer approval.
Is 100% financing guaranteed?
No — and be wary of anyone who promises it. Whether you qualify depends on your income, credit, debts, and the property. Anh will tell you honestly what your options look like.
Can I use my RRSP for a down payment?
Qualifying first-time buyers can withdraw from an RRSP under the Home Buyers’ Plan, subject to the program’s rules including repayment terms. It works best when planned ahead.
What is the First Home Savings Account?
The FHSA is a registered account for first-time buyers offering tax-deductible contributions and tax-free qualifying withdrawals, within annual and lifetime limits. It’s worth opening as early as you can if a purchase is a few years out.
Do gifted down payments need to be repaid?
Genuine gifts don’t — that’s what makes them gifts in a lender’s eyes. A signed gift letter confirms the funds aren’t a loan. If family money must be repaid, lenders treat it as debt instead.
Apply Now — Anh Lang (TMG Mortgages, 780-446-1271) will review your application and call you back.
Anh Lang — TMG Mortgages — 780-446-1271 — price@ourhouseprice.ca — Part of the Our House Price Real Estate Team