Are you looking to buy a house but struggling to come up with the down payment?
In this guide, we cover the best provincial and municipal down payment assistance programs, what federal help is still available, and other ways to fund your down payment, such as a gift from family, a co-signer, or co-ownership.
Key Points
1. A down payment assistance program helps cover part of your down payment through a grant, a forgivable loan, a repayable loan, or a shared-equity arrangement.
2. Most provinces (and some cities) offer a down payment assistance program, though many are limited to certain areas, income levels, or first-time buyers.
3. The federal First-Time Home Buyer Incentive was discontinued in 2024, but federal savings tools like the FHSA and Home Buyers’ Plan can still help.
4. Private options, such as Ourboro, let you co-own a home to reduce the cash you need upfront.
Do Down Payment Assistance Programs In Canada Exist?
Yes, down payment assistance programs do exist in Canada, though there is no longer a single federal program that covers everyone. Most help now comes from the provinces and some individual cities, with a few private options as well.
With the national average home price sitting around $696,078 as of June 2026, saving a full down payment is out of reach for many buyers, which is exactly the gap these programs are meant to close.1
Best Down Payment Assistance Programs In Canada
Most provinces, and some individual cities, offer their own down payment assistance program. Here is a quick overview, followed by the details for each.
| Province | Program | What It Offers |
|---|---|---|
| Alberta (Calgary) | Attainable Homes Calgary | A shared-equity grant that covers most of the down payment; you pay $2,000 upfront. |
| Manitoba | Affordable Homes Program | Forgivable loans toward the down payment and closing costs for low-income buyers. |
| Manitoba (Metis citizens) | Manitoba Metis Federation First-Time Home Purchase Program | A 5% down payment of up to $18,000, plus up to $2,500 toward closing costs. |
| Saskatchewan (Saskatoon) | Mortgage Flexibilities Support Program | A 5% down payment grant to help buy an eligible home in Saskatoon. |
| Ontario (province-wide) | Ontario Priorities Housing Initiative (OPHI) | Down payment assistance as a forgivable loan for eligible first-time buyers, delivered through local Service Managers. |
| Ontario (Simcoe County) | Affordable Home Ownership Program | Up to 10% down payment assistance as an interest-free 20-year loan. |
| Quebec | Acces Condos | A purchase credit that lowers your down payment on a condo to as little as $1,000. |
| New Brunswick | Home Ownership Program | An interest-free forgivable loan of up to $75,000 for buyers with income of $40,000 or less. |
| Nova Scotia | Down Payment Assistance Program (DPAP) | An interest-free repayable loan of up to 5% of the purchase price (max $25,000). |
| Prince Edward Island | Down Payment Assistance Program (DPAP) | An interest-free loan of up to 5% of the purchase price, to a maximum of $17,500. |
Ontario: Ontario Priorities Housing Initiative (OPHI)
Many of Ontario’s local down payment programs are funded through the province’s Ontario Priorities Housing Initiative (OPHI). Under its homeownership component, eligible first-time buyers can receive down payment assistance in the form of a forgivable loan, usually repayable only if you sell or move out within a set period. Because OPHI is delivered by each municipality’s Service Manager, the income limits, price caps, and loan amounts vary by region, which is why cities like Kitchener and Barrie run their own versions.
Learn more: OPHI
Ontario: Kitchener (Waterloo Region)
If you are looking for a new home in Kitchener, you are in luck. The city is offering a generous program to help first-time home buyers with their down payment. The program is called the Affordable Home Ownership Program, and it works like this:
- The city will lend you 5% of the purchase price of your home, interest-free and payment-free if you live in it for at least 20 years.
- If you decide to sell or move out before 20 years, you will have to repay the loan based on 5% of the current market value of your home (like the former federal First-Time Home Buyer Incentive).
To be eligible, you must have been a resident of Waterloo Region for at least 12 months, have a household income of no more than $129,200, be buying a home in the region for $620,000 or less, and meet some other requirements.
Learn more: Affordable Home Ownership Program
Ontario: Barrie (Simcoe County)
If you are looking for a home in Barrie (Simcoe County), you might be eligible for a 20-year forgivable loan from the county to cover up to 10% of the purchase price. This loan is interest-free and does not require monthly payments. The only condition is that you share the same percentage of the property value with the county when you sell your home, unless you keep it as your primary residence for more than 20 years. In that case, the loan is forgiven.
Learn more: Simcoe Secondary Affordable Home Ownership Program
Quebec: Montreal
If you are looking for an affordable and quality home in Montreal, you might be interested in the Acces Condos program. This program offers you the opportunity to buy a condo with a 10% purchase credit, which reduces your down payment to $1,000. You can also benefit from attractive financing conditions from the program’s partner financial institutions.
The Acces Condos program is managed by the Societe d’habitation et de developpement de Montreal (SHDM), a non-profit organization that aims to improve the housing conditions of Montrealers. To be eligible for the Acces Condos program, you must meet certain criteria, such as occupying the unit as your principal residence.
Note: Acces Condos Is Currently On Hold
As of 2026, the Acces Condos program is under review by the SHDM and has no units available for sale. Since it launched in 2005, it has helped develop 3,925 units across 33 projects in Montreal. Check the SHDM website for the latest status before you count on it.
Alberta: Calgary
If you are looking for a way to buy a home in Calgary, Alberta, with a low down payment, you might be interested in the Attainable Homes Program. This program is designed to help moderate-income earners achieve homeownership by providing them with a grant that covers most of the down payment. The only requirement is that you pay $2,000 upfront and meet the eligibility criteria.
The Attainable Homes Program is not a gift, though. It is a shared equity program, which means that when you sell your home, you have to share a portion of the appreciation value with the program. The amount you have to share depends on how long you stay in your home. The longer you live there, the more equity you get to keep.
Learn more: Attainable Homes Calgary
Manitoba: Affordable Homes Program
The Affordable Homes Program helps low- to moderate-income households purchase a home. The program provides financial assistance in the form of a forgivable loan for the down payment and closing costs. The loan amount is based on the household income, the purchase price of the home, and the location of the property. The down payment portion is forgiven over time, as long as the homeowners maintain ownership and occupancy of the home.
To be eligible for the program, you must meet certain criteria, such as:
- Being a first-time home buyer or not having owned a home in the last five years.
- Having a total household income below the established income limit for your area.
- Being able to qualify for and obtain a mortgage loan from an approved lender.
- Being able to cover the additional costs of homeownership, such as property taxes, insurance, utilities, and maintenance.
- Purchasing a home that meets the program’s standards for quality, size, and price.
Manitoba Metis citizens may also qualify for the Manitoba Metis Federation First-Time Home Purchase Program, which provides a 5% down payment of up to $18,000, plus 1.5% (up to $2,500) toward closing costs.
Learn more: Manitoba Affordable Homes Program
Saskatchewan: Saskatoon
The city of Saskatoon runs the Mortgage Flexibilities Support Program, which offers a 5% down payment grant to help eligible buyers purchase a home in the city. The grant is attached to specific developments and comes with income and price conditions, so confirm the current eligibility rules and available projects before you apply.
New Brunswick
If you are a low-income household in New Brunswick, you may be eligible for the Home Ownership Program. This program provides financial assistance to help you buy or build a modest home that meets your needs. You can receive a forgivable loan of up to 40% of the purchase price of an existing home or up to 50% of the construction cost of a new home (up to $75,000).
To be eligible for the program, you must:
- Have a total household income of $40,000 or less.
- Have a good credit rating and be able to obtain a mortgage from a bank or credit union.
- Not own or have a legal interest in any other property.
- Agree to use the home as your principal residence.
Learn more: New Brunswick Homeownership Assistance Program
Nova Scotia
If you are a first-time homebuyer in Nova Scotia, you may be eligible for a loan that can help you with the down payment on your dream house. The Down Payment Assistance Program (DPAP) is a government initiative that provides interest-free loans of up to 5% of the purchase price of a home, up to a maximum of $25,000. The loan is repayable over 10 years and can be combined with other sources of funding. Nova Scotia has also launched a separate pilot that lowers the required down payment to as little as 2% for some first-time buyers.
To qualify for the DPAP, you need to meet certain criteria, such as:
- You have a household income of $145,000 or less.
- You have a good credit history and a pre-approved mortgage.
- You are buying a home that costs no more than $570,000 in Halifax County and the Municipality of East Hants (a lesser amount in the rest of the province).
- You intend to live in the home as your primary residence.
- You have completed a homebuyer education course.
Learn more: Down Payment Assistance Program (DPAP)
Prince Edward Island (PEI)
Are you looking for a way to buy your first home in Prince Edward Island? If so, you might be interested in the Down Payment Assistance Program offered by Finance PEI. This program provides eligible applicants with a repayable loan of up to 5% of the purchase price of a new or existing home, up to a maximum of $17,500. The loan is interest-free and has a maximum term of 10 years.
To qualify for the program, you must:
- Be a first-time homebuyer or a person with a disability who is buying a home that meets your needs.
- Have a household income of $110,000 or less.
- Have a pre-approved mortgage from an approved lender.
- Live in the home as your primary residence.
The program is available for homes with a maximum purchase price of $350,000. The loan amount is based on the lesser of the purchase price or the appraised value of the home. The loan is secured by a second mortgage on the property and must be repaid in monthly installments.
Learn more: PEI Down Payment Assistance Program
Are There Federal Government Down Payment Assistance Programs?
Not anymore, at least not a direct one. The federal First-Time Home Buyer Incentive, a shared-equity program that put 5% or 10% toward your down payment, was discontinued on March 21, 2024.2 There is currently no federal program that gives you money specifically for a down payment. What the federal government does offer is a set of tax-advantaged tools to help you save for and access one.
Federal Savings Programs: FHSA, HBP, And More
- First Home Savings Account (FHSA). Save up to $40,000 toward your first home, with tax-deductible contributions and tax-free withdrawals.
- Home Buyers’ Plan (HBP). Withdraw up to $60,000 from your RRSP (up to $120,000 for a couple) toward your down payment, to be repaid over time.
- Home Buyers’ Tax Credit. A non-refundable credit worth up to $1,500 for eligible first-time buyers.
- First-Time Home Buyers’ GST Rebate. A newer federal rebate of up to $50,000 in GST on an eligible new home.
What Is A Down Payment Assistance Program?
A down payment assistance program helps cover part, and sometimes all, of the down payment you need to buy a home. Most are aimed at first-time buyers and lower-income households. They come in a few different forms, and the type of program determines whether you have to pay the money back and how.
| Program Type | How It Helps | Repayment |
|---|---|---|
| Grant | Provides money toward the purchase | Usually no repayment |
| Forgivable loan | Provides a loan toward the down payment | May be forgiven after an occupancy period |
| Repayable loan | Provides a loan toward the down payment | Repaid over time or at sale |
| Shared equity | The provider contributes equity | Repay a percentage of the future home value |
| Co-ownership | A private provider co-invests in the home | The provider shares in the future value |
Who Qualifies For Down Payment Assistance?
Every program sets its own rules, but many look for some combination of the following:
- You are a first-time home buyer, or you have not owned a home in the last few years.
- Your household income is below a set limit.
- The home is under a maximum purchase price.
- You will live in the home as your primary residence.
- You have a pre-approved mortgage from an approved lender.
- In some cases, you have completed a homebuyer education course.
Because these programs are meant for the home you will live in, they do not apply to a second property, which has its own minimum down payment for a second home. Whatever program you use, your lender will also want proof of your down payment and where it came from.
Other Ways To Help You Afford A Home
Assistance programs are not the only route to homeownership. Beyond them, there are other ways to make the numbers work, and it helps to understand how to shop for a mortgage so you get the best rate.
Family: Gifted Down Payment
Many first-time buyers get help from family in the form of a gifted down payment. As long as the money is a true gift and comes with a signed mortgage gift letter, most lenders will let you use it toward your down payment. Because there is no gift tax in Canada, the full amount can go toward your home.
Get A Co-Signer For A Better Rate
If your income or credit is not quite strong enough to qualify on your own, adding a co-signer can help you get approved, and sometimes at a better rate. A co-signer, often a parent, agrees to take on the mortgage if you cannot pay, so lenders view the application as lower risk. Keep in mind that a co-signer is equally responsible for the debt.
Borrow Part Of Your Down Payment
If you are still short after savings and any assistance, some buyers borrow money for a down payment from an approved source. This can work, but borrowed funds come with their own rules and costs, and not every lender or mortgage insurer allows them.
Co-Own Your Home With Ourboro
If you are looking for a way to buy a home with less money upfront, consider Ourboro. Ourboro is a company that helps you co-own a home with them. They will put down 5% to 15% of the home’s purchase price, up to $250,000, as a down payment. You will only need to put down 5% of the purchase price yourself. The ownership share of the home will depend on how much each party contributes to the down payment. For example, if you put down 5% and Ourboro puts down 15%, you will own 25% of the home’s appreciation.
Ourboro is not available everywhere, though. You can only use their service if you are buying a home in the Greater Toronto Area (GTA) or some parts of Southwestern Ontario, such as Hamilton and London. Ourboro is an innovative way to make homeownership more accessible and affordable for people who have less savings or income.
Bottom Line
As you can see, there are a variety of down payment assistance programs available. First-time home buyers, specifically, should always check if their province offers down payment assistance. These types of programs can alleviate some of the financial burden of purchasing a house and make homeownership a reality for many Canadians.
Down Payment Assistance Programs FAQs
The First-Time Home Buyer Incentive was a federal shared-equity program that ran from 2019 to 2024. It gave eligible first-time buyers 5% or 10% toward their down payment, repayable when they sold the home or after 25 years, whichever came first. CMHC discontinued the program on March 21, 2024, and it no longer accepts applications.2 If you are looking for federal help today, the FHSA and the Home Buyers’ Plan are the main options.
The minimum down payment in Canada is 5% on a home priced under $500,000. For homes priced between $500,000 and $1,500,000, the minimum is 5% on the first $500,000 and 10% on the portion above that. For homes priced at $1.5 million or more, the minimum down payment is 20% of the entire amount. As of December 15, 2024, the home price cap for insured mortgages is $1.5 million.3
Mortgage default insurance protects lenders from the risk of borrowers defaulting on their mortgage payments. It is usually required when the borrower has a down payment of less than 20% of the property value. It does not cover the borrower’s losses in case of default, but rather compensates the lender for the unpaid portion of the loan. Mortgage default insurance is also known as CMHC insurance.
Shared equity mortgages are a type of home loan that allows the borrower and the lender to share the ownership of the property. In a shared equity mortgage, the borrower pays a lower interest rate and a smaller down payment but agrees to give up a percentage of the future appreciation or depreciation of the home value. The lender, in turn, provides a larger loan amount and assumes some of the risk of market fluctuations.
Yes, you may be able to borrow money for your down payment without having to come up with the funds from your savings. Known as a [no down payment mortgage](https://loanscanada.ca/mortgage/no-down-payment-mortgages/), you’re still responsible for providing the down payment, just not necessarily from your bank account. Keep in mind that there are typically restrictions on fund sources for down payments from mortgage default insurers.
References
- Canadian Real Estate Association (CREA). (2026). National average home price, June 2026. https://www.crea.ca/
- Canada Mortgage and Housing Corporation. (2024). First-Time Home Buyer Incentive. https://www.cmhc-schl.gc.ca/
- Government of Canada. (2026). Down payment requirements. https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html
