How to Buy a Home With No Down Payment in Alberta: 2025 Guide

no down payment mortgage
Written By Renee Huse

If you’re wondering how to buy a house without a down payment in Alberta, you’re not alone — and yes, it’s possible. While zero down mortgages aren’t directly offered by lenders anymore, there are still powerful, legal strategies to get you into a home with no savings upfront.

Renee Huse, founder of Spire Mortgage Team in Alberta, has helped hundreds of Albertans from Calgary to Grande Prairie become homeowners without a down payment saved. This guide walks you through exactly how to do it — step by step — and who qualifies.

In This Guide:

What Does “No Down Payment” Actually Mean in 2025?

Let’s clear something up: you can’t walk into a bank and get a mortgage for 100% of the purchase price in Canada.

BUT — you can still buy a home in Alberta with no savings in the bank, if you structure your down payment wisely. What this means is that you’re bringing in the minimum 5% down payment (required for insured mortgages) by borrowing it — legally and strategically.

Here are the most common ways we help Alberta clients make that happen:

  • A loan from a line of credit or unsecured personal loan
  • Occasionally, a secured loan against a vehicle you own outright
  • An RRSP or FHSA loan — this is often the most powerful strategy if you can qualify (learn more about the FHSA here)

This is what we mean when we talk about a no down payment mortgage in Alberta: you're using smart borrowing to bring the 5%, and then qualifying for a regular insured mortgage with your full income, credit, and debt profile.

Step-by-Step: How to Buy With Zero Down in Alberta

Step 1: Confirm You Qualify for an Insured Mortgage

To go with less than 20% down, you must qualify under insured mortgage rules, which in 2025 include:

  • Strong credit (typically 650+)
  • Clear history of on-time payments and low debt
  • Solid, documentable income
  • Property price under $1,500,000
  • Max 30-year amortization (updated)

Check your affordability using our Mortgage Qualifier Calculator.

Step 2: Choose Your Down Payment Strategy

We help clients choose the best-fit option from:

  • Unsecured line of credit or personal loan
  • Vehicle-secured loan
  • RRSP or FHSA loan, then withdrawal through the Home Buyers' Plan or FHSA rules

We ensure your structure meets lender and insurer guidelines.

Step 3: Get Pre-Approved With a Broker

Traditional banks often don’t support borrowed-down-payment strategies. At Spire, we work with lenders across Canada who do — giving you more choice, more flexibility, and better odds of approval.

Apply now using our secure application.

Step 4: Know Your Monthly Budget

You’ll be repaying two things:

  1. Your mortgage (at 3.99% for a 5-year fixed term)
  2. Your borrowed loan or LOC

We help calculate the full picture so you can plan confidently and avoid surprises.

Step 5: Shop and Close With Confidence

With your pre-approval in hand, we guide you through every step of your home search — including working with Alberta-based realtors who understand borrowed down payment structures.

Case Study: How Mike in Edmonton Bought With No Savings

Mike, a 28-year-old buyer in Edmonton, was paying $2,300/month in rent and watching housing prices climb. He wanted to buy a $370,000 townhouse but didn’t have any savings for a down payment.

Here’s how we helped:

  • Home price: $370,000
  • Borrowed 5% down: $18,500 via unsecured line of credit at 10%
  • Mortgage amount: $351,500 insured
  • Rate: 3.99% fixed, 30-year amortization
  • Monthly mortgage payment: ~$1,642
  • Loan repayment (interest only): ~$154/month
  • Total monthly cost: ~$1,796

Compared to rent, Mike is now saving over $500/month and building equity. He plans to pay off the LOC with his annual bonus and tax refund.

“I thought I needed years to save. Renee showed me how to buy now — and make the numbers work.” — Mike, Edmonton

Who This Strategy Works For

This approach is ideal for any Alberta homebuyer who:

  • Has strong credit history and consistent repayment behavior
  • Shows stable, sufficient income (either salaried or self-employed with strong declared earnings)
  • Wants to buy a primary residence (not for investment)
  • Has little or no savings, but can afford monthly payments

This strategy does not work for:

  • Newcomers to Canada without credit or income history
  • Investors buying non-owner-occupied properties
  • Self-employed clients who don’t declare enough income
  • Employees with insufficient or unstable income

Glossary: Key Mortgage Terms

  • Insured Mortgage: A loan with less than 20% down, backed by insurers like CMHC to protect the lender.
  • Borrowed Down Payment: Using a loan or LOC to fund your down payment legally.
  • FHSA (First Home Savings Account): A tax‑advantaged savings plan for buying your first home. Learn more here.
  • RRSP Loan: A short‑term loan to boost your RRSP, then withdraw funds under the Home Buyers’ Plan.
  • Unsecured Line of Credit (LOC): A revolving loan not tied to assets, often used to fund down payments.
  • Amortization: The total period over which the mortgage is paid off — now up to 30 years for insured purchases.
  • Closing Costs: Expenses due at purchase (legal fees, taxes, disbursements) — typically 1–1.5% of the price.
  • Debt Ratios: Lenders look at your gross and total debt service ratios (GDS and TDS) to ensure you can afford the mortgage and other debt payments.

FAQ: Common Zero Down Questions

Can I buy a home in Alberta with no savings?
Yes — if you have strong credit and sufficient income, we can help you legally borrow the 5% down.

Do I need to be a first‑time buyer?
No. This strategy works for any buyer, as long as you qualify for an insured mortgage.

Will I pay more with a borrowed down payment?
Not on the mortgage — you can still qualify for insured rates (currently 3.99%). But you’ll also repay the loan, which we factor into your affordability.

Does this work if I’m self‑employed?
Yes — but only if you claim enough income on your personal taxes to qualify.

What if I’ve got great credit but low income?
Unfortunately, strong income is just as important. You must be able to afford both the mortgage and the down payment loan.

Final Thoughts: You Don’t Need to Wait

A no down payment mortgage is not just possible in Alberta — it’s practical, if you have the right structure. Don’t let the lack of savings keep you on the sidelines while rents rise and prices climb.

Give us a call or fill out an application at this link: https://spiremortgage.ca/apply-now and our team will get in touch with you to start building a plan that suits you.

Written by Renee Huse, licensed mortgage broker and founder of Spire Mortgage. Renee helps Albertans make confident real estate decisions with smart financing strategies tailored to their goals. Learn more about Renee here.

Renee Huse
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