Low Down Payment Mortgages: Best Options for First-Time Buyers in 2025

Low Down Payment Mortgages: Best Options for First-Time Buyers in 2025

Mortgage Rates
October 21, 2025•2 min read

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Buying your first home in 2025 is more achievable than you might think — even if you don’t have a large down payment saved. With housing prices stabilizing and mortgage rates showing signs of easing, several programs in Canada make it possible to become a homeowner with as little as 5% down.

Here’s a breakdown of the best low down payment mortgage options available to first-time buyers in 2025.

🏡 1. CMHC-Insured Mortgages (5% Down)

The Canada Mortgage and Housing Corporation (CMHC) allows buyers to purchase a home with as little as 5% down on the first $500,000 of the purchase price.

  • Ideal for: Buyers with limited savings but strong income stability

  • Key benefit: Lower entry cost into the housing market

  • Tip: Keep your debt ratios in check to qualify more easily

💰 2. First-Time Home Buyer Incentive (FTHBI)

The FTHBI is a shared-equity program where the Government of Canada contributes 5%–10% of your home’s purchase price in exchange for a proportional share in your property’s value.

  • Ideal for: Buyers looking to reduce monthly payments

  • Key benefit: Lowers your mortgage amount and improves affordability

🏦 3. 5% Down Conventional Mortgages

Some lenders offer low down payment conventional loans without requiring CMHC insurance for qualified borrowers.

  • Ideal for: Buyers with strong credit and stable income

  • Key benefit: Avoids CMHC premiums and extra fees

🏠 4. Flex Down Payment Mortgages

With flex down programs, lenders allow you to borrow the down payment from a personal loan, line of credit, or gift.

  • Ideal for: Buyers who can handle additional debt responsibly

  • Key benefit: Enables quick entry into the housing market

💳 5. Credit Union and Alternative Lender Options

Many credit unions and monoline lenders offer flexible mortgage solutions, including 90–95% loan-to-value financing.

  • Ideal for: Buyers with limited credit history or self-employed income

  • Key benefit: Personalized underwriting and flexible qualification

✅ Final Thoughts

If you’re a first-time buyer in 2025, low down payment mortgage options can help you enter the market sooner without waiting years to save. Compare rates, incentives, and lender programs to find the best fit for your financial goals.

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Sarah is a Lead Underwriter as RateShop. Sarah manages her team that is resposible for completing over 400 mortgage transactions a year. She has been working with several nationwide lenders, with expert knowledge in Canadian Mortgage Lending criteria, her focus is on guiding her clients through the difficult choices of fixed and variable rates, terms and helps identify opportunities that save them more money.

Sarah Papa

Sarah is a Lead Underwriter as RateShop. Sarah manages her team that is resposible for completing over 400 mortgage transactions a year. She has been working with several nationwide lenders, with expert knowledge in Canadian Mortgage Lending criteria, her focus is on guiding her clients through the difficult choices of fixed and variable rates, terms and helps identify opportunities that save them more money.

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