In the ever-evolving Canadian real estate landscape of 2025, first-time home buyers face a familiar hurdle: scraping together a down payment. But what if you could bypass that barrier entirely? On the latest episode of the Close More Deals podcast, host Scott Dillingham breaks down innovative strategies to qualify buyers without traditional savings. Drawing from his lending expertise, Dillingham spotlights government-backed programs like CMHC FlexDown 2025, RSP loans, and cash-back mortgage rebates, all tailored for those with a solid 700 credit score. Whether you’re prospecting in Windsor or navigating Ontario home buying hacks, these tips make affordable housing accessible.
This blog post recaps Dillingham’s episode, “Unlocking Opportunities for Buyers Without Down Payments,” while weaving in fresh 2025 updates on flexible down payment programs, debt ratio borrowing, and insured mortgage cash back. If you’re a first-time buyer eyeing no-down-payment mortgages or a real estate pro seeking prospecting strategies, read on for actionable advice to close deals faster. Let’s dive into how you can borrow your down payment and step into homeownership today.
Prospecting in Canada’s real estate market demands resilience. As Dillingham notes in the podcast’s opening, “Getting out there, prospecting, doing all those things—it’s a lot of hard work.” Buyers often shut down conversations with “I don’t have a down payment,” but savvy agents and lenders flip the script by educating on viable paths forward.
The key? Shift focus from barriers to solutions. For homes under $500,000, the minimum down payment remains 5%, but programs like CMHC Purchase allow flexible sourcing of those funds. This means borrowing from lines of credit, family, or even credit cards—without derailing your deal. Dillingham stresses that strong buyers (think stable income and good credit) can qualify immediately, turning “no” into “yes” in one call.
Real estate prospecting strategies for no-down-payment buyers in 2025 emphasize empathy and education. Start by asking about their credit score early—it’s a gateway question that uncovers hidden opportunities. In Ontario, where home prices hover around $800,000 in major cities, these tactics are gold for agents targeting millennials and Gen Z entrants. By arming clients with knowledge, you build trust and position yourself as the go-to expert.
Credit isn’t just a number—it’s your ticket to flexible financing. Dillingham kicks off the credit discussion at the 0:14 mark: “If [their score] is 700 or higher, then they can potentially tap into one of these two programs.”
A 700 credit score unlocks premium options in 2025, signaling low risk to lenders. Here’s how to leverage it:
For Windsor buyers, LendCity pre-approval shines here. Their streamlined process evaluates 700+ scores for flexible down payment programs, often within 24 hours. Pro tip: Avoid new inquiries pre-application to protect your score.
Enter CMHC’s FlexDown program—the star of Dillingham’s episode. At 0:11, he explains: “The first program is… called FlexDown. What it does, it’s flexible down payment… They can borrow their down payment… and we’re good to go.”
Updated for 2025, FlexDown lets qualified buyers source 5-9.99% down from unsecured loans, with property values up to $1 million eligible (5% on the first $500K, 10% thereafter). Eligibility requires a strong credit profile (700+), stable income, and no recent bankruptcies. Non-residing family co-borrowers are okay if immediate relatives.
How it works:
Sagen FlexDown mirrors this, offering similar perks for 90.01-95% LTV, with premiums as low as 2.8% added to your mortgage. For first-time buyers, it’s a game-changer: No need for gifted funds proof, just transparency on sources.
Dillingham’s “little layer” hack? Pair FlexDown with cash-back offers. “We would have the client borrow the 5% down, then… give them the 5% cash back so they could pay off the loan.”
In 2025, rebates range 1-5%, though they bump rates by 20 basis points per 1% (e.g., +1% for full 5%). TD offers up to $4,000 cash back on new mortgages funded by November 30, 2025. Insured mortgage cash back is ideal for debt ratio borrowing, as rebates can immediately repay the down payment loan.
Ontario home buying hacks amplify this: Combine with the proposed HST rebate (up to $130,000 savings on new builds under $1.5M). Result? You buy now, repay later, and pocket tax breaks.
For a lower-risk route, Dillingham spotlights RSP loans at 1:36: “The client goes to a bank… deposit [into] RRSPs… get a tax break… After 90 days, redeem for the down payment.”
This ties into the Home Buyers’ Plan (HBP), allowing tax-free RRSP withdrawals up to $60,000 ($120,000 for couples) for first-timers, repayable over 15 years. 2025 updates include extended eligibility for recent graduates.
Benefits:
Ideal for buyers with steady jobs but no savings—perfect for post-school starters Dillingham mentions.
| Feature | CMHC FlexDown | RSP Loan (HBP) |
|---|---|---|
| Timeline | Immediate | 90 days |
| Down Payment Source | Borrowed (unsecured) | RRSP withdrawal (tax-free) |
| Credit Requirement | 700+ | 700+ |
| Rate Impact | Potential +1% for cash back | Best rates, no cash back needed |
| Repayment | Via minimum payments | 15 years, installments |
| Best For | Urgent buys | Tax-savvy planners |
As Dillingham compares at 2:44, FlexDown wins for speed, RSP for ease and refunds. Both demand strong income—aim for GDS under 39%.
Dillingham’s podcast is prospecting gold. In 2025, with softening prices and rate drops, focus on:
These close more deals by empowering buyers.
Ontario’s 2025 scene favors hackers:
For Canada locals, LendCity streamlines pre-approvals with no-income-limit Flex programs, accepting lower scores for zero-down scenarios. Pair with Sagen for insured cash back.
Sagen’s version requires 5% down (borrowed okay) for ≤$500K homes, with premiums charted by LTV. Strong credit? Debt ratios stay manageable.
In Canada, homeownership isn’t a dream—it’s a strategy. Check resources below, get pre-approved, and unlock your future. What’s your first move? Share in comments!