No Down Payment? No Problem: Help Clients Buy with a Borrowed Down Payment

November 24, 2025 · Scott Dillingham

Spotify

The #1 reason first-time buyers walk away from a deal is 'I don't have the down payment.' In this episode, Scott Dillingham shows you how to legally help clients borrow their down payment using CMHC FlexDown, cash-back mortgages, and gifted funds — turning dead-end conversations into closed deals.

Scott layers in a pro tip from his early days at LendCity: pair FlexDown with cash-back mortgages offering 1% to 5% rebates. Borrow the 5% down, close the deal, then use the instant cash back to repay the loan—leaving clients with just their primary mortgage and zero extra debt. This tactic sidesteps common barriers for first-time buyers in Canada's competitive housing scene. With average home prices holding steady and new rules favoring insured low-down-payment loans, Scott stresses education over pressure sales, urging listeners to qualify credit first and prospect relentlessly for long-term wins.

Whether you're a realtor building your pipeline or a buyer eyeing that first property, this episode equips you with actionable intel to bypass down payment roadblocks. Hosted by LendCity, Canada's trusted mortgage partner for pre-approvals and custom solutions, it blends practical wisdom with updated 2025 market insights for sustainable wealth building in real estate.


Key Takeaways

  • Prospecting Mindset: Real estate success demands consistent outreach—when clients cite no down payment, pivot to credit checks; scores of 700+ unlock flexible programs like CMHC FlexDown for immediate action.
  • CMHC FlexDown Basics: Borrow the 5% minimum down from lines of credit, personal loans, or family; lenders include only minimum payments in debt ratios, keeping affordability intact for strong borrowers (confirmed active via CMHC/Sagen in 2025).
  • Cash-Back Layering Hack: Select lenders offering 1-5% rebates (e.g., up to $5,000 from TD or YNCU promotions ending late 2025) to repay borrowed down payments post-closing, simplifying to a single mortgage payment.
  • Credit Threshold Strategy: Always start with a credit score inquiry—700+ qualifies for insured flexibility, avoiding conventional 20% down requirements and enabling 95% loan-to-value purchases under $500,000.
  • Debt Ratio Caution: Borrowed funds must be conservative; focus on minimum payments only, and educate clients on long-term impacts to build trust and prevent overextension in today's rate environment.
  • LendCity Action Step: Contact LendCity for free pre-approvals to test FlexDown eligibility, turning prospecting leads into closed deals with transparent, client-first advice.

Links to Show References

  • (00:02) - Qualifying Buyers Without Down Payments
  • (00:14) - Understanding Credit Scores
  • (01:36) - Exploring RSP Loans
  • (02:44) - Comparing Loan Options
  • (03:18) - Key Takeaways for Buyers