How to build your mortgage down payment.

Increasing the size of your down payment can be a very good idea. The bigger your down payment, the smaller the mortgage you’ll need for the purchase of your home. With a smaller mortgage, the smaller the payments you need to make, and the less overall interest you’ll pay.

Saving money.

While saving your down payment, you’ll want to keep it somewhere accessible, so you can add to it regularly — and withdraw it easily when you’re ready. It should also offer a return, so you’re earning interest while you wait for the right time to buy. But steer clear of high-risk investments, like stocks, that might fluctuate unpredictably, leaving you with less than you planned on.

Buying your first home in Canada?

If you are new to Canada, it is important for you to start building a credit history right away. To start, you’ll need:

  • An international credit bureau report (if you came from the US). Vancity can request this report for you.
  • A bank reference letter from your previous financial institution (if you came from outside the US).

Smart savings options.

Choose lower risk savings options to meet your unique needs:

Consolidating debt.

As a first-time home buyer, you may want to consider consolidating your debt under a single loan to reduce your interest rate and monthly payments. Every debt payment you have reduces the amount you can borrow for your mortgage.

Consolidating debt may include items such as:

If you’re interested in consolidating your debt, we can help you find a solution that makes sense for you. Explore smarter ways to pay off your debt.

Using your RRSP savings.

You may be able to withdraw a portion your RRSP savings to buy or build a qualifying home through the Home Buyers’ Plan. Before you make a withdrawal, check the Government of Canada Home Buyers’ Plan to get the most up-to-date information and make sure you follow the rules to avoid taxes or penalties.

Leveraging government programs.

Canada’s First-Time Homebuyer Incentive (FTHBI) Program helps make homeownership more affordable for qualified first-time homebuyers. The program offers 5 or 10% of the home’s purchase price to put toward a down payment, which lowers your mortgage carrying costs.

Visit for more information on the program and qualification requirements.

Using monetary gifts.

You can put gifts of money from family and relatives towards a down payment. If you do, you may need to show where the money came from and confirm it’s non-repayable by providing bank statements and a letter from the gift-giver.

Sharing your mortgage.

If saving for a down payment on your own feels out of reach, it might be worth considering a joint mortgage with other family or friends to share the costs. This option is becoming more popular as people look for creative ways to achieve their goals, such as:

To help members make their dreams of owning a home a reality, we are happy to offer innovative financing options, like our Mixer Mortgage™ for first-time homebuyers.

Take the next step.

Find a specialist near you

Interested in a new mortgage or refinancing? Browse our mortgage specialists to connect with someone in your area.

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Talk through your questions

For general mortgage inquiries or help with renewing your mortgage, book a time that works for you and we’ll give you a call back.

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