In This Article The $0 Down Payment Strategy Is Real London's Down Payment Assistance: The Gold Standard Who Qualifies for London's Program The Rent vs. Own Math That Changes Everything Other Zero-Down Programs Across Canada Stack Programs for Maximum Benefit The Four Steps to Zero Down What You Still Need to Cover The Opportunity Cost of Waiting If You Sell Before the Loan Is Forgiven FAQ Stop Waiting and Start Building Equity Table of Contents The biggest myth in Canadian real estate is that you need tens of thousands of dollars saved before you can buy a home. The reality? Multiple government programs across Canada will literally hand you your down payment—interest-free, sometimes forgivable. We see it every week: qualified buyers who assume homeownership is years away because they don't have $25,000 sitting in a savings account. Then we show them the math, and they're holding keys within 90 days. The $0 Down Payment Strategy Is Real Here's how it works in practice. On a 0,000 home in Ontario: Amount Minimum down payment required (5%) $25,000 Government assistance available Up to $25,000 Your down payment out of pocket $0 You still need to cover closing costs ($8,000–$15,000 depending on location), but the actual down payment—the part most people think takes years to save—can be fully covered. What closing costs to expect as a first-time buyer London's Down Payment Assistance: The Gold Standard The City of London runs one of the most generous programs in Canada. Here are the numbers that matter: Details Maximum assistance $25,000 Interest rate 0% — zero Loan forgiveness 100% after 20 years Coverage Up to 5% of purchase price Maximum home price $500,000 That's right—if you stay in your home for 20 years, the City of London forgives the entire loan. You pay back nothing. Compare that to a typical personal loan: borrowing $25,000 at 8% over 20 years would cost you nearly $50,000 in total payments. London's program? $0 in interest. $0 repayment if you stay. If you're in London or Middlesex County, read our full breakdown of the program with eligibility details and application steps. Who Qualifies for London's Program The eligibility requirements are straightforward: Must be at least 18 years old Cannot currently own a home or residential property (including cottages) Total household liquid assets under $100,000 Income limits: $95,000 single | $115,000 family Must be a current renter in London or Middlesex County Must be eligible for a mortgage at a recognized financial institution Must agree to occupy the home (no renting it out) Previously owned a home but currently renting? You still qualify. This isn't limited to first-time buyers who've never owned. The Rent vs. Own Math That Changes Everything Every month you pay rent, you're building someone else's equity. Here's how the numbers play out over 20 years: What You've Built After 20 Years Renting at $1,800/month $0 equity. Rent has increased to ~$3,500. Your landlord owns a paid-off property. Owning with $25K assistance $300,000+ in equity. Home potentially worth $600,000+. Assistance loan forgiven. The difference isn't $1,800 vs. a mortgage payment. The difference is $432,000 in rent payments that disappear forever vs. a home that YOU own. Is now a good time to buy? Other Zero-Down Programs Across Canada London isn't the only municipality offering assistance. Here are programs worth investigating: Maximum Benefit London DPA London, ON $25,000 (forgivable after 20 years) Habitat for Humanity National Interest-free mortgages Welcome Home Program Various municipalities Varies by city Indigenous Homeownership National (CMHC) Down payment assistance + reduced rates Provincial Programs BC, AB, ON Varies — check your province The key insight: most of these programs require mortgage pre-approval before you can apply. That's where we come in—we get you approved first, then handle the program applications. Stack Programs for Maximum Benefit The zero-down strategy gets even more powerful when you combine it with other first-time buyer programs: Benefit London DPA Up to $25,000 toward down payment First Home Savings Account (FHSA) Up to $40,000 tax-free RRSP Home Buyers' Plan Up to $60,000 withdrawal ($120,000 for couples) Ontario Land Transfer Tax Rebate Up to $4,000 back TOTAL POTENTIAL BENEFIT $129,000+ That's $129,000 in combined assistance, tax savings, and rebates. For a couple, it's even more. How to maximize your FHSA The Four Steps to Zero Down The process is simpler than most people expect: Step 1: Get pre-approved for a mortgage. This is non-negotiable—every government program requires it. We work with 50+ lenders to find your best fit. Step 2: Find a home within program limits. For London, that's under $500,000. Other programs have different caps. Step 3: Apply for assistance. Once pre-approved, we submit the program application on your behalf. Most respond within 5 business days. Step 4: Close on your home. The assistance funds flow directly to your lawyer at closing. You walk in with keys. What You Still Need to Cover Zero down payment doesn't mean zero costs. Be prepared for: Typical Range Closing costs (legal, land transfer tax, title insurance) $8,000–$15,000 Home inspection $400–$600 CMHC insurance premium (added to mortgage) 4% of mortgage amount Moving costs $1,000–$3,000 The CMHC insurance premium is the biggest item, but it's added to your mortgage—you don't pay it upfront. On a $500,000 home with 5% down, the premium is approximately $19,000 added to your mortgage balance. How CMHC insurance works and what it costs The Opportunity Cost of Waiting Every year you wait to buy, you face two headwinds: Rising prices: Canadian home prices have increased in every 10-year period since 1980. Waiting for a "crash" has historically been a losing strategy. Lost equity: That $1,800/month rent payment builds zero wealth. A mortgage payment at $2,100/month builds roughly $800/month in equity from day one—and that accelerates every year. If you're investing the difference while renting, that's a valid strategy. But most renters aren't—they're just spending what they would have spent on a mortgage payment anyway. See how opportunity cost works with our car payment vs. TFSA comparison Will the Canadian housing market actually crash? If You Sell Before the Loan Is Forgiven For the London program specifically, selling before 20 years requires: Repayment of the original assistance amount Plus 5% of any capital gains (profit on the home) Voluntary early repayment anytime with no interest penalty If you sell at a loss, repayment may be waived entirely. Bottom line: this program rewards long-term homeownership. If you're putting down roots, it's essentially free money. Stop Waiting and Start Building Equity The down payment barrier is the most common reason Canadians delay homeownership. But for buyers in London and many other cities, that barrier has been removed entirely. Every month you continue renting is a month of equity you're giving away. The City of London is offering $25,000 in free money to help you stop. The only question is whether you'll take it before the funding runs out. See If You Qualify for $0 Down Take our 2-minute quiz and we'll check your eligibility for government down payment programs. Check Eligibility Now Call (416) 822-7357 Frequently Asked Questions Can I really buy a home with $0 down payment? Yes—the down payment itself can be fully covered by government programs like London's DPA. You'll still need funds for closing costs ($8,000–$15,000), but the traditional barrier of saving 5–20% for a down payment can be eliminated. Do I need to be a first-time buyer? For London's program, no. You need to be currently renting and not currently own property, but you can have owned a home previously. Requirements vary by program. Will this affect my mortgage rate? No. The government assistance is a separate loan/grant that doesn't affect your mortgage terms. You'll qualify for the same rates as any other buyer. What if I want to rent out a room? London's program requires you to occupy the home and not lease it or individual rooms. Other programs may have different rules. How long does the process take? Mortgage pre-approval: 24–48 hours. City program response: typically 5 business days. Total timeline from first contact to keys: 60–90 days in most cases. Can I combine this with the FHSA and RRSP Home Buyers' Plan? Absolutely. Stacking programs is the smartest move. The FHSA gives you $40,000 tax-free, the HBP lets you withdraw $60,000 from your RRSP, and the DPA covers your down payment. Combined, that's over $125,000 in benefits.
