Mortgage Approval Process

Is the Mortgage Approval Process Hard for Those Without a Down Payment?

For many homebuyers, shopping starts in a lender’s office. This is where you’ll know whether or not you’ll be approved for the mortgage. But what happens when you want to purchase a home but have no down payment? 

Your down payment acts as a security deposit of sorts. Most lenders believe that you’re less likely to default on your loan if your money is on the line. Well, it’s safe to assume that the mortgage process will be fairly difficult without a down payment. Unfortunately, it can take a substantial amount of time to save on the cash required for a down payment.

What Makes the Pre-Approval Process So Hard?

Getting approved for a mortgage without a down payment becomes that much harder. Even if you secure the mortgage, you’ll most likely end up with a lesser amount than what you initially hoped for. This could mean that you’ll end up with a significantly smaller home. Also, you’ll pay more interest over the lifeline of the mortgage in comparison to a borrower with a down payment.

Things You Can Do to Come Up With a Down Payment 

Getting approved for a home mortgage without a down payment is hard enough.; But you can always consider these alternatives:

  • Wait and save up for a down payment

This is always a logical route to take! Living within a budget and cutting costs will help you create a savings account that will be directed toward a mortgage down payment. 

  • Ask relatives for a loan

If you’re not looking to take out a loan, you can always ask willing relatives to come together and contribute money that will serve as your down payment. Granted, this is often a difficult conversation but it may be worth exploring if you have no other way out.

  • Maximize government resources

There are a number of government programs that offer help with mortgage down payments. 

Down payment is a big mortgage hurdle but with these options, it can be possible. They will come in handy especially if you don’t need a large amount of money. It will be easier for a relative to offer the cash and it will take less time to save for a smaller amount. This means that you should adequately weigh your options before giving a down payment. 


Getting approved for a mortgage with no down payment is possible but it comes with a lot of tight restrictions. If you’re a first-time homebuyer, it’s worth speaking to your lender or mortgage broker like Altrua Financial about your available options as they will address your concerns. It’s no surprise that this professional has become a go-to source for Canadians looking to secure favorable mortgage rates. 

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