For Nelgun Romero, owning a home in Canada once seemed nearly impossible. After moving from the Philippines to Ontario in 2021, rising housing costs and the increasing cost of living made homeownership feel like a distant dream.
That changed when Romero discovered an innovative one per cent down payment housing program in Steinbach, Manitoba. By 2025, he and his family had secured a home in the growing Lexington Village community, paying just $4,000 upfront and approximately $11,000 in legal fees, significantly lowering the barrier to entry.
The program was created by Steinbach-based realtor Waldo Neustaedter, who envisioned a pathway to affordable homeownership after being inspired by a community housing model he encountered in Florida. Partnering with Three Way Builders and Steinbach Credit Union, the initiative officially began construction in 2017.
Since then, more than 500 homes have been built across Steinbach and nearby Kleefeld, offering modestly sized single-family houses designed for accessibility and future expansion. Homes in the development range from approximately $290,000 to $329,000 and are priced below market value to improve affordability.
Unlike traditional mortgages, the program allows buyers to bypass costly mortgage insurance requirements. Neustaedter provides financial backing similar to a guarantor, enabling lenders to approve mortgages for buyers with minimal upfront capital, as explained by Steinbach Credit Union CEO Curtis Wennberg.
The success of the initiative has led to expansion plans in Mitchell, Manitoba, where more than 200 additional homes are planned. Early demand for the new phase has already proven strong, with strict vetting ensuring buyers have stable employment and the ability to meet payment obligations. To date, no participants have defaulted on their loans.
Housing advocates say programs like this can be especially impactful for newcomers. Emily Schott of Eastman Immigrant Services noted that access to affordable housing remains one of the biggest challenges for immigrants, and initiatives like this provide a rare opportunity to transition from renting to ownership in safe, stable communities.
However, experts caution that while low down payment programs can improve access, they must be carefully structured to remain sustainable. Carolyn Whitzman of the University of Toronto School of Cities emphasized the importance of long-term affordability measures, such as resale restrictions, to prevent market distortion and ensure continued access for future buyers.
As housing affordability continues to challenge middle-class Canadians, innovative solutions like Steinbach’s one per cent down payment program are gaining attention as potential models for broader adoption.
