Zero Down Program Ontario FAQ (2026) | Buy a Home With No Down Payment
Royal Canadian Realty · Buyer Resources
Zero Down Program in Ontario: Frequently Asked Questions
Straight answers to the questions buyers ask us most often about buying a home in Ontario without saving years for a traditional down payment.
The Zero Down Program helps qualified buyers across Ontario become homeowners without waiting years to save a traditional down payment. At Royal Canadian Realty, we help eligible buyers understand the program and connect them with licensed mortgage professionals who assess eligibility and structure the financing.
Below are the questions we hear most often, answered plainly. Every buyer’s situation is different, so the figures here are general guidance — your own numbers come from a personalized review.
Q1What are the disadvantages of the Zero Down Program?
The main trade-off is that your total financing is larger than it would be if you had saved your own down payment, which generally means higher overall borrowing costs and a slightly higher monthly payment. Buyers should also be comfortable carrying the payment and keeping a financial cushion for unexpected costs after closing.
For many buyers, entering the market sooner — particularly where home values appreciate over time — can outweigh these trade-offs, but the program isn’t the right fit for everyone. A licensed mortgage professional can help you weigh the numbers honestly against your own situation before you decide.
With the Zero Down Program, the down payment typically comes from an approved, insured borrowed source rather than your own savings, and it is built into your overall financing plan. It is not a rent-to-own arrangement — you purchase and own the home from the closing date.
The exact structure depends on your income, credit, debts, and overall profile, which a licensed mortgage professional reviews to determine the most suitable option available to you. Insured borrowed-down-payment options may be offered through mortgage default insurers such as CMHC, Sagen, and Canada Guaranty, depending on your file.
Q3Is the down payment added to my monthly mortgage payment?
In most cases, repayment of a Zero Down arrangement is built into your overall monthly obligations, though the exact structure varies from file to file. Once a licensed mortgage professional reviews your documents, you receive accurate figures based on your specific situation rather than estimates — so you know your real monthly commitment before you commit to anything.
Q4What interest rate applies to the borrowed down payment?
Rates on a borrowed-down-payment source vary by lender, credit profile, and the programs available when you apply, and they change frequently. Because of that, the most reliable answer comes from a licensed mortgage professional reviewing your file, who will lay out the current options that actually apply to you rather than a general figure that may be out of date.
Q5Do I still need money for closing costs with Zero Down?
Yes. The Zero Down Program helps with the down payment, but buyers are still generally expected to cover closing costs and legal expenses. As a rough guide, budget roughly 1.5% to 4% of the purchase price — this varies by property, price, and location, and in Ontario the Land Transfer Tax (plus the additional municipal tax in Toronto) is often the single largest item. First-time buyers may qualify for Land Transfer Tax rebates that reduce this cost.
Typical closing costs include:
Legal fees and disbursements
Land Transfer Tax (provincial, and municipal in Toronto)
Title insurance
Adjustments for property taxes and utilities
A home inspection, if you choose to have one
We can prepare a personalized closing-cost estimate once you have a target price range.
Ask for your estimate.
Q6Does Zero Down mean a higher interest rate than a standard mortgage?
Not necessarily. Your mortgage rate is driven mainly by factors such as your credit score, income, debt ratios, and lender guidelines — not by the Zero Down structure itself. Some financing structures carry slightly different costs, but this varies between lenders and borrower profiles. A licensed mortgage professional can confirm the actual rate options for your situation.
Q7Does Royal Canadian Realty charge any fees for the program?
No. Royal Canadian Realty does not charge program, brokerage, or administrative fees for helping clients explore the Zero Down Program. Helping buyers qualify for and navigate the program takes real time and expertise, and we provide it as part of working with our team through the home-buying process.
Any lender-related fees, where they apply, are disclosed to you in advance by the licensed mortgage professional before you proceed — so there is full transparency on costs from the start.
Q8Are there resale restrictions or penalties if I sell early?
Generally, nothing about the Zero Down Program restricts you from selling your home when you choose. As with any mortgage, there may be discharge fees or prepayment penalties depending on the lender and the specific mortgage product you select. These details are reviewed with you before you commit to any financing, so there are no surprises if your plans change later.
Q9How can I improve a credit score below 650 to qualify?
Several steps tend to move a credit score in the right direction within a few months:
Make every payment on time, every time
Keep credit-card balances well below their limits
Pay down revolving debt where you can
Avoid new credit applications while you are improving your score
Correct any reporting errors on your credit bureau
Consistency matters most — avoiding missed or late payments has the largest effect over time. We can point you toward a confidential pre-qualification review to see where you stand today and what is realistic.
The next step is a confidential pre-qualification review. In a short 20–30 minute consultation, a licensed mortgage professional reviews your income, employment, credit, and available closing funds, then gives you a realistic purchase-price range and a clear answer on whether Zero Down fits your goals.
Written by the Royal Canadian Realty buyer-advisory team and reviewed by Pushpinder Gill, Broker of Record, Royal Canadian Realty (RECO-licensed). Serving Mississauga, Markham, Kitchener, Hamilton, and communities across Southern Ontario.
Last updated June 2026.
Disclaimer: The information on this page is provided for general educational purposes only and does not constitute financial, mortgage, legal, accounting, or tax advice, nor an offer or guarantee of financing. Royal Canadian Realty is a licensed real estate brokerage and does not provide mortgage brokering services; mortgage financing, including any borrowed-down-payment arrangement, is arranged through licensed mortgage professionals and is subject to qualification, lender approval, and the terms and programs available at the time of application. All figures are estimates and may not reflect your circumstances. Programs, rates, and terms are subject to change without notice. Please consult the appropriate licensed professionals for advice specific to your situation before making any financial or purchasing decision.
Please note: This page is general information only and is not financial, mortgage, legal, or tax advice. Royal Canadian Realty is a licensed real estate brokerage, not a mortgage brokerage — mortgage financing is arranged through licensed mortgage professionals. Eligibility, rates, and terms depend on your individual circumstances, lender approval, and the programs available when you apply, and are subject to change. Please get advice specific to your situation before making any decision.
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