Yes, zero down mortgages exist
Zero down mortgages are real. You might also hear them called flex down or borrowed down payment mortgages — same idea, different names.
Instead of having the down payment sitting in your savings account, you borrow it from a line of credit, a loan, or any other credit product. You use that borrowed money as your down payment, then carry both the mortgage and the loan you used to fund it.
The RRSP shortcut (if you're a first-time buyer)
If you're a first-time home buyer, you can borrow the funds to open an RRSP account. Once those funds sit there for 90 days, you can pull them out under the Home Buyers' Plan and use them as your down payment.
It's a way to turn borrowed money into RRSP contribution room and then into a down payment — all without waiting years to save.
The trade-off: your buying power shrinks
The catch is that the borrowed down payment gets added to your debt service ratio — the calculation lenders use to figure out how much mortgage you can handle. That monthly loan payment eats into what you qualify for, so your max purchase price drops.
You're trading a smaller mortgage approval for the ability to buy now instead of waiting. For a lot of people, especially in a rising market, that trade makes sense. You get into homeownership and start building equity today.
What to do next
If you don't have a down payment saved but you can service the extra debt, a zero down mortgage might be the fastest path to owning instead of renting. Run the numbers with someone who knows how the ratios work and what you'll actually qualify for — that way you know exactly what you're working with before you start looking.
