There is a program in New Brunswick that helps clients become homeowners with no down payment required. I am going to provide the criteria at the end of the blog. The program is designed to help people with a family income of $40000 and less get into a home. The product is a 2nd mortgage behind a lenders 1st mortgage. The majority of lenders in the market place today still require you to have at least 5% down payment as they will not allow a 2nd mortgage to go to 100% of the homes value. I, however, do have access to a lender that will allow a 2nd mortgage behind there 1st to the full sale price of the home. This means you are able to buy a home with no down payment. This particular lender does require the home to be located in a Urban center with a population of 25000 or more. This lender does require any outstanding collections, accounts that are behind etc to be paid in full or brought up to date. They will also look at and approve clients that have had problems with there credit and whose credit score is below the required 600 that you need to get a normal traditional deal.

This is the basic requirements for the program:


Provides financial assistance to low and modest income families to help them buy or build a modest first home.

Families or individuals with total household incomes below $40,000, and who can obtain private financing such that when combined with our funding would result in the total acquisition/construction of the unit.

You must also:
– Be a first-time home owner or be living in a substandard housing unit.
– Be a resident of New Brunswick and have been living here for at least one year.
– Have a good credit rating and meet all financial institution lending requirements for obtaining a first mortgage. Applicants are not required to have a down payment.
– Any type of modest housing which qualifies for a 25-year conventional mortgage, or a 20-year mortgage in the case of a manufactured home, may be eligible.

If purchasing an existing unit:
– The department will provide assistance in the form of a repayable loan for 40% of the purchase price of the unit.
– Eligible applicants must meet all lending requirements of their financial institution (bank, credit union, caisse populaire, trust company).

If building a house:
– The department will provide basic assistance in the form of a repayable loan to a maximum of $75,000. The Department’s financial contribution is not to exceed 50% of the total house costs. The applicant would have to provide proof of private financing of a sufficient amount that when combined with our assistance would ensure completion of the house. The Total Debt Service Ratio for new construction loans should not exceed 42%.
– Whether you are purchasing or building a house, the loan will be repaid at 0% interest for those households with incomes less than $30,000. For each $1,000 of adjusted income above $30,000, the interest rate will increase by 0.5% until it equals the provincial borrowing rate.
– Loans will be amortized over a period not to exceed 25 years, and will be subject to terms of one year.

Seek out the proper advice before giving up. There are still plenty of options when looking to purchase a home. Call me to discuss your situation as I maybe able to help. If I cannot help now then I can provide you with a road map to help you purchase that home in the future.

Eric Gall is a mortgage specialist for TMG -Atlantic. If you are purchasing, refinancing or renewing your mortgage contact Eric at [email protected]