Can’t Afford the Down Payment? Here Are 6 Ways to Buy Your First Property Sooner
Buying your first property is an exciting step—but for many first-time buyers, saving up for the down payment can feel like the biggest hurdle. The reality is, most people are ready to handle mortgage payments but don’t have $20,000 or more just sitting in the bank.
Here’s the good news: even if your savings are limited, there are smart, creative ways to get into the market sooner than you think.
In Canada, lenders require a minimum 5% down payment which means $20,000 on a $400,000 property, and even more as prices increase. But there are proven strategies to help you buy your first property, even if you don’t have that full amount today.
Let’s break down 6 ways to make it happen:
1. Rent-to-Own: Lease with a Purchase Option
Some homes and condos are available with rent-to-own agreements. This model allows you to rent the home now while applying a portion of your monthly rent toward the eventual purchase. It gives you time to improve your financial situation while locking in today’s market value. Together with the seller, you’ll agree on the terms and timeline—making it a great step for aspiring homeowners who need flexibility.
2. Use Your RRSP with the Home Buyers’ Plan (HBP)
The Home Buyers’ Plan lets you withdraw up to $35,000 from your RRSP (Registered Retirement Savings Plan) tax-free for your first property. If you’re buying with a partner who’s also a first-time buyer, that’s up to $70,000 combined.
You’ll have 15 years to repay the amount, with no repayments required in the first two years. It’s a smart way to access your retirement funds early—without the tax hit.
3. Get an RRSP Loan to Create Funds You Can Use
Even if you haven’t contributed to an RRSP yet, it’s not too late. You can get an RRSP loan from your financial institution, deposit it into your RRSP, wait 90 days, then withdraw it using the Home Buyers’ Plan. This method gives you access to cash you didn’t think you had—and could be the key to making your first property a reality.
4. Team Up with Friends or Family
Buying with others is becoming more common, whether it’s siblings, friends, or partners. Pooling your income and savings helps meet down payment requirements and increases your buying power. It’s essential to have a clear legal agreement in place, but this option can fast-track your entry into homeownership.
5. Use a Family Member’s Home Equity
Some buyers use a trusted relative’s home equity to secure financing. A lender may allow the equity in that person’s home to count toward your down payment. It’s a generous and high-trust option but when structured correctly with legal protections, it can benefit both parties.
6. Look for Municipal Incentive Programs
Certain cities offer first-time homebuyer assistance to attract new residents. For example:
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Quebec City offers interest-free loans under the Accès Famille program.
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Montreal provides up to $15,000 for new builds or a refund on land transfer taxes for resales through its homeownership program.
These programs can be the boost you need to buy your first property in a vibrant, growing area.
Let Our Team Help You Buy Your First Property
When you’re planning to buy your first property, having a strong team behind you makes all the difference. That’s where we come in.
I work alongside Steven Lurie, mortgage broker and financial strategist, to guide you through your buying journey with confidence. Steven specializes in building custom financing solutions for first-time buyers and will help you explore every possible option based on your lifestyle and goals.
At SellingLifestyle.Homes, we believe buying your first property isn’t just about square footage, it’s about securing the lifestyle you want.
Ready to start your journey toward your first property? Reach out to us today. We’ll help you unlock the door—with or without a full down payment.
