First Time Home Buyer Mortgages in Ontario & Canada
A First Time Home Buyer Mortgage When the Bank Says No
If a bank declined you over credit or income, you can still buy your first home. A first time home buyer mortgage from Turnedaway.ca is approved on your down payment and the property, not just your credit score. With a minimum of 20% down plus closing costs, from savings, a gift, or rent-to-own credits, we arrange financing other lenders will not. Learn more about self-employed mortgages and bad credit mortgages.
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Approvals in as fast as 24 hours · 20% down plus closing costs · We look beyond your credit score
Yes, you can get a first time home buyer mortgage even if a bank declined you, as long as you have at least 20% down plus closing costs. Our lenders approve based on your down payment and the property you are buying rather than your credit score or income alone. That 20% can come from savings, a gift from family, or equity built through a rent-to-own, and it keeps your financing within an 80% loan-to-value limit from day one.
20%
Minimum down payment plus closing costs to qualify for this program.
24 hrs
Typical approval window through Turnedaway.ca, versus weeks at a bank.
80%
Maximum loan-to-value, so your down payment protects you from day one.
3
Ways to reach your down payment: savings, a family gift, or rent-to-own credits.
For first-time buyer programs and rules, see the Government of Canada.
Why Banks Decline First Time Buyers, and How We Say Yes
Banks judge first-time buyers on a narrow checklist: a strong credit score, two years of provable income, and a clean fit with their stress-test rules. Plenty of capable buyers fall outside that box. You might be self-employed with income that does not show on paper, new to Canada with a thin credit file, or rebuilding after a rough patch. Even with a solid down payment saved, a bank can still say no.
We look at the picture the banks ignore. With a minimum of 20% down plus closing costs, our lenders approve based on your down payment and the property itself, not your credit score alone. That 20% acts as a built-in equity cushion, which is why we can arrange a first time home buyer mortgage for people other lenders turn away. For an overview of the home-buying process, the Financial Consumer Agency of Canada is a helpful resource.
At Turnedaway.ca, we have helped thousands of clients the banks turned away by working with a wide network of alternative and private lenders. That breadth is what lets us match first-time buyers to a lender who will say yes.
Where Your Down Payment Can Come From
Your 20% does not have to be cash you saved alone. We work with several sources, and they can be combined to reach the 20% position. Each source must be documented and confirmed.
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Saved Cash Down Payment
The traditional route: you have saved at least 20% of the purchase price plus closing costs.
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Rent-to-Own Credits
Equity built through a rent-to-own agreement can count toward your 20% when you buy out.
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Gift of Equity
A family member selling below market value can provide the down payment through the difference in value.
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Gifted Cash
A cash gift from a family member, supported by a gift letter, can make up some or all of your down payment.
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A Combination
Savings, a gift, and rent-to-own credits can be stacked together to reach the 20% position.
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Other Documented Sources
Have another source in mind? Talk to us. If it can be documented and confirmed, it may qualify.
How a First Time Home Buyer Mortgage Works
Buying your first home through Turnedaway.ca is straightforward, even if a bank already declined you. Here is what the process looks like from your first application through to closing.
Tell Us About Your Situation
Apply securely at apply.turnedaway.ca. Tell us your budget and where your down payment is coming from, whether savings, a gift, or rent-to-own credits.
Get Pre-Approved
We confirm your down payment position and the price range that keeps you within our 80% loan-to-value limit, so you can shop with confidence.
Find Your Home and Make an Offer
Once you find the right property, we finalize the lender match. An independent appraisal confirms the home's value.
Review Your Full Cost Disclosure
Every cost is laid out in a written Cost of Credit Disclosure before you sign, including closing costs and any broker or lender fee. Your lawyer completes the legal work.
Close and Get Your Keys
You close on your first home, and we build an exit plan to move you toward bank-rate financing as your credit and income strengthen.
Who Qualifies for a First Time Home Buyer Mortgage?
Approval is based primarily on your down payment and the property, not your credit score or income alone. The key requirement is a 20% down position plus closing costs.
At Least 20% Down Plus Closing Costs
From savings, a gift, rent-to-own credits, or a combination. This is the core requirement for the program.
Declined by a Bank Over Credit
Bruised or thin credit does not disqualify you when you bring a strong down payment.
Self-Employed
Income that does not fit a bank's template is no obstacle when approval is based on your down payment and the property. See our self-employed mortgage options.
New to Canada
A thin Canadian credit history will not stop you when your down payment position is strong.
Buying Out a Rent-to-Own
Reached the buyout point in a rent-to-own? The equity you have built can count toward your down payment.
Receiving Family Help
A gift of cash or a gift of equity from a family member can provide your down payment, with the right documentation.
or call 1-855-668-3074
How the Numbers Work
Your down payment sets the price range. Because we cap financing at 80% loan-to-value, your 20% down position is what unlocks the purchase. Here is a simple example.
Simple Example
| Detail | Amount |
|---|---|
| Purchase Price | $650,000 |
| Down Payment Position (20%) | $130,000 |
| Mortgage Financed (80% LTV) | $520,000 |
| Plus Closing Costs (budget 3 to 5%) | approx. $19,500 to $32,500 |
Closing costs commonly include land transfer tax, legal fees, and an appraisal, and in most cases a broker or lender fee. Every cost is set out in writing before you commit. Use our calculator to explore the numbers.
Closing Costs to Plan For
Beyond your down payment, a first-time purchase comes with closing costs. Budgeting 3 to 5% of the purchase price is a sensible starting point. This table is a general guide, and your exact costs are confirmed in writing before closing.
| Cost | What It Covers |
|---|---|
| Land Transfer Tax | A provincial tax on the property's purchase price, often the largest closing cost |
| Legal Fees | Your lawyer's work to review, register, and close the purchase |
| Appraisal | An independent confirmation of the property's value |
| Home Inspection | An optional but recommended check of the home's condition |
| Broker or Lender Fee | Where applicable, disclosed in writing in your Cost of Credit Disclosure |
For first-time buyer programs and rebates, see the Government of Canada.
Our Commitment to Responsible Lending
It would be easy to promise the world to someone eager to buy their first home. We will not do that. Turnedaway.ca is a licensed mortgage brokerage, and our job is to give you honest guidance, not just a transaction.
We do not arrange financing above 80% loan-to-value, with no exceptions. The 20% down requirement is not a hurdle we put in your way, it is a protection. It means you start with real equity in the home, which gives you a buffer if values dip and a stronger footing as a new owner. Every deal is built with an exit strategy to move you toward conventional, lower-cost financing as your credit and income strengthen.
The full cost of any solution, including the interest rate, lender fee, broker fee, legal fees, and appraisal, is disclosed in writing through a formal Cost of Credit Disclosure for your specific deal before you commit.
or call 1-855-668-3074
Real Client Results
Every situation is different. Here are three examples of how Turnedaway.ca helped first-time buyers purchase a home when traditional lenders said no.
Case Study 1 | Rent-to-Own Buyout
Buying the Home They Had Been Renting
A Durham Region family had been in a rent-to-own program for several years and reached the purchase deadline. Due to past credit issues, they were unable to qualify with a major bank despite making all required payments under the agreement. With a purchase price of approximately $650,000 and roughly $140,000 accumulated through rent credits and savings, more than 20% of the price, financing was arranged at approximately 78% loan-to-value.
Result: The family successfully purchased the home they had been renting and avoided losing the equity they had built through the rent-to-own program.
Case Study 2 | Gift-of-Equity Family Sale
Buying From Family Below Market Value
An Ontario buyer was purchasing a property from a family member at below market value. Traditional financing was challenging because the transaction structure did not fit standard lending guidelines. With a property value of approximately $800,000 and a purchase price of approximately $640,000, the difference provided more than 20% equity at closing, and financing was arranged at 80% loan-to-value based on the purchase structure.
Result: The buyer acquired the property without requiring a large cash down payment while keeping financing within acceptable lending limits.
Case Study 3 | Self-Employed Buyer With Limited Credit History
Approved on the Strength of the File
A self-employed business owner had substantial savings for a down payment but limited traditional credit history. Despite strong cash reserves, several lenders declined the application over income verification and credit concerns. With a purchase price of approximately $700,000 and a down payment of approximately $175,000 from business and personal savings, 25% of the price, financing was arranged at 75% loan-to-value.
Result: The buyer successfully purchased the property, secured financing based on the overall strength of the file, and established a path toward future conventional lending.
or call 1-855-668-3074
Where We Serve
Turnedaway.ca helps first-time buyers across Canada. The cities below represent areas we serve regularly, but they are not an exhaustive list. We work with buyers in every province and territory with the exception of Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.
Call us at 1-855-668-3074 or get started online today.
Frequently Asked Questions About First Time Home Buyer Mortgages
Can I get a first time home buyer mortgage if a bank declined me?
Yes, if you have at least 20% down plus closing costs. A first time home buyer mortgage through us is approved on your down payment and the property rather than your credit score alone, so a bank decline over credit or income is often not the final answer.
How much down payment do I need?
For this program, a minimum of 20% of the purchase price plus closing costs. That keeps your financing within an 80% loan-to-value limit and gives you real equity from day one.
Where can my down payment come from?
From savings, a gift of cash or equity from a family member, equity built through a rent-to-own, or a combination of these. Each source needs to be documented and confirmed.
What is a gift of equity?
When a family member sells you a home below market value, the difference between the appraised value and the purchase price can serve as your down payment. With the right documentation, this can satisfy the 20% requirement without a large cash outlay.
Can rent-to-own credits count toward my down payment?
Often, yes. If you have built equity through a rent-to-own agreement, that credited amount can count toward your 20% position when you buy the home. We review your agreement as part of the application.
Do you check my credit score?
Credit is reviewed, but it is not the deciding factor. With a 20% down position, our lenders weigh the down payment and the property far more heavily than a credit score, which is why bruised or thin credit is not a dealbreaker.
What are the closing costs?
Budget 3 to 5% of the purchase price. Closing costs commonly include land transfer tax, legal fees, and an appraisal, and in most cases a broker or lender fee, all disclosed in writing in your Cost of Credit Disclosure before you commit.
I am self-employed. Can I qualify?
Yes. Because approval is based on your down payment and the property rather than provable income, self-employment is not the obstacle it is at a bank. See our self-employed mortgage options for more.
How fast can I get approved?
Approvals are often available in as fast as 24 hours once we have your details. Apply online to get started.
Can I switch to a regular mortgage later?
Yes. We build an exit plan into every file so that as your credit and income strengthen, you have a clear path to refinance into conventional, lower-cost financing.
Buy Your First Home, Even After a Bank Said No
With 20% down plus closing costs, your first home is closer than the bank let on. Apply today and get a response within 24 hours, with no obligation and full transparency on cost.
Get Approved Nowor call 1-855-668-3074