From Renter to Homeowner: 8 Programs and Mortgage Solutions to Help You Buy Your First Home in Newfoundland

If you're renting in Newfoundland and dreaming about homeownership, you might be closer than you think. Between national programs, flexible financing options, and supportive lenders, there are more ways than ever to take the leap from renting to owning—without needing a massive down payment or perfect credit.

Here are 8 powerful ways you can make that dream a reality.

🏡 Programs & Incentives for First-Time Buyers in Newfoundland and Canada

1. First-Time Home Buyer Incentive (FTHBI) – Still Active for Some

The federal government offers a shared equity program where they contribute 5% or 10% of your home’s purchase price, reducing the amount you need to borrow. There are no monthly payments, and the amount is only repaid when you sell or refinance.

🕒 Heads up: This program is being phased out in 2025, so there’s still time for some buyers to qualify—especially here in Newfoundland where many homes fall within the eligible price range.

2. Home Buyers' Plan (HBP)

This long-standing federal program allows you to withdraw up to $60,000 tax-free from your RRSP to use as a down payment on your first home.

Repayment is spread over 15 years, and it’s interest-free. This is a great option for buyers who have been saving in their RRSPs while renting.

3. First Home Savings Account (FHSA)

Launched in 2023, this new account allows you to contribute up to $8,000 per year, with a lifetime max of $40,000, and withdraw it tax-free for your first home.

You can also combine it with the HBP for even more down payment power.

💡 Creative Mortgage Solutions & Flexibility for Renters

4. Flexible Down Payment Options

Some lenders allow your down payment to come from a personal loan, line of credit, or a gift—as long as your income supports the total debt load. This can be a great strategy for renters with strong income but not enough saved.

5. Cash-Back Mortgages

Certain lenders offer mortgages with up to 5% cash back at closing, which can be used for moving costs, legal fees, or even boosting your down payment. This gives you flexibility when you're tight on savings.

6. Rental Payment History as a Credit Alternative

If you've been renting and making payments on time for 12 months or more, some lenders will accept that history as an alternative to traditional credit, especially if you're self-employed or have a thin credit file.

This can be a game-changer for renters in Newfoundland with limited credit but a strong financial track record.

7. Buy with Just 5% Down

You don’t need 20% down! For homes priced under $500,000, you can buy with as little as 5% down—that’s only $20,000 on a $400,000 home.

With recent GST rebates on new builds, your out-of-pocket costs could be even lower.

8. Co-Borrowers and Guarantors

A parent, sibling, or close friend can co-sign or act as a guarantor to help boost your application—especially helpful if your income isn’t quite enough on its own.

They don’t need to live in the home, but their involvement can make the difference in getting approved.

❤️ You Don’t Have to Figure It Out Alone

Many renters in Newfoundland are surprised to learn they already qualify—or are just a few small steps away. Whether you're ready to buy this year or you're starting to plan ahead, I’m here to guide you through it.

Let’s map out your options, crunch the numbers, and create a custom plan for your path to ownership.

📅 Book a free consultation today—no pressure, just real answers.

-Tonia, The Mortgage Missus

Contact The Mortgage Missus Inc. today to learn more!

tonia@themortgagemissus.ca 

About the author,

Tonia Mercer is an independent mortgage broker. She has been in the industry for 17 years, in 2021 she launched her own brokerage The Mortgage Missus Inc. 

Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers. Effectively creating a concierge service for all things financial and real estate.

Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission