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Different Types of Down Payments

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There are several different types of down payments you can use to qualify for a traditional mortgage in Canada.

While the minimum amount for a down payment is 5% (plus around 1.5% for closing costs), the source of the funds aren’t always the same for everyone.

To give you an idea of where you can accumulate your down payment from, we’ve made a list.


Using the savings from a traditional savings account* is one of the most common types of down payments.

The down payment must sit in your savings account* for over three months and the deposits must be traceable.

Monthly or bi-weekly contributions are very common forms of making deposits to your savings account*.

pink piggy bank that helps you save for a down payment

Some banks even have a “round up” program that will take every purchase you make using your debit card round up to the nearest dollar amount.


That extra portion will then be transferred to a savings account*.


Other bank programs will deposit a set target amount into your savings account* with every purchase you make i.e. $5 a purchase.


Whatever your method for saving is, every bit of it will help with a down payment.

Gifted Down Payment

When receiving a gifted down payment, lenders require that it comes from immediate family only.


The reason?


Lenders want to make sure that your gifted down payment really is a gift. Chances of it being a loan are less likely coming from an immediate family member.


The donor must then provide a gift letter outlining all of the details, including the mandatory expiry date of 90 days from the initial date of gifting.


A Registered Retirement Savings Plan (RRSP) is recommended for retirement, but can also be a down payment source for first-time homebuyers.


In order to withdraw to $35,000 from your RRSP for a down payment, you must participate in the government of Canada’s Home Buyer’s Plan.


If you have a group or lock-in RRSP you may not be eligible for this plan. Find more details on the government of Canada website.   

Bridge to Homeownership™ Powered by EP Homes

This alternative homeownership program  can help you save for a down payment, all while living in your brand-new turnkey home.



The program conducts a fair market appraisal on a new home from one of our preferred homebuilder partners to determine how much your monthly payment will be.



Included in your monthly payment is a savings component that will accumulate to be your down payment at the end of the 3-year lease term.



Our mission is to help everyday people become their best financial self as homeowners.


We understand everyone’s situation is unique and have structured our program to be flexible. 



We are not a one-size-fits-all and happily make customizations for every client with good credit and no down payment. 



Our six-step program can help everyday people get into a new home and on the path to homeownership with their own down payment by the end of the program.


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