Buying a home is one of the biggest financial steps you can take, and in a competitive market like Victoria, BC, many buyers wonder if it’s possible to purchase a home with no money down. The short answer is: you generally can’t buy a home in Victoria with absolutely no money down, but there are several programs and strategies that can help reduce your upfront costs.
Why Zero Down Is Rare
Canadian mortgage rules typically require a minimum down payment of at least 5% of the purchase price. On top of that, buyers should also account for closing costs such as legal fees, inspections, and property transfer taxes. While it’s extremely rare to buy with nothing out-of-pocket, creative financing options exist to make homeownership more accessible.
Programs That Can Help Reduce Upfront Costs
- BC Housing’s Affordable Home Ownership Program (AHOP): AHOP helps buyers by contributing a portion of the down payment through a second mortgage with no monthly payments. This reduces the amount you need to save before buying.
- Federal First-Time Home Buyer Incentives:
- First-Time Home Buyer Incentive: The federal government offers a shared equity program, contributing 5% (resale homes) or up to 10% (new builds) toward your purchase.
- Home Buyers’ Plan: You can withdraw up to a set limit from your RRSP savings to use for your down payment.
- Rent-to-Own or Lease-to-Own Programs: Certain developers and financial programs allow you to rent a property with an option to buy later, with a portion of your rent going toward your future down payment.
- Gifted Down Payments: If you have family support, some lenders accept gifted funds toward your minimum down payment.
What You Still Need to Budget For
Even with assistance, you’ll still need some funds set aside. Costs such as inspections, legal fees, moving expenses, and mortgage insurance (if your down payment is under 20%) are unavoidable.
While buying a home in Victoria with zero down is not realistic under most circumstances, programs like AHOP, federal incentives, and rent-to-own options can make homeownership far more accessible. If you’re planning to enter the market, speak with a mortgage broker or financial advisor to explore which programs you qualify for and how to best structure your purchase.
