Mortgages for Newcomers to Canada

Yes. Several major Canadian lenders have specific newcomer mortgage programs designed for people with no Canadian credit history. These programs accept international credit reports, rental payment history, and bank reference letters as alternatives. Permanent residents who have been in Canada for less than 5 years and work permit holders can access these programs. We work with multiple lenders who specialize in newcomer mortgages and can match you with the best option.

The required down payment depends on your residency status and the lender program. Permanent residents qualify for the same minimum 5% down payment as Canadian citizens on properties up to $500,000 (with mortgage insurance). Work permit holders typically need a minimum 10% down payment. Some newcomer programs may require 10% even for permanent residents if there is no Canadian credit history at all. We help identify the program that requires the lowest down payment for your specific situation.

Yes. Canadian lenders accept down payment funds from international sources, but you will need to provide documentation proving the source and legitimacy of the funds. This typically includes bank statements from your home country showing the accumulation of funds, proof of transfer to Canada, and a foreign exchange receipt. If the funds were a gift from a family member overseas, a signed gift letter is required. Anti-money laundering regulations require clear paper trails for all international fund transfers.

Employment in Canada significantly strengthens your application, but it is not always required. Permanent residents with a confirmed job offer from a Canadian employer may qualify even before starting work. Some lenders will also consider income from international sources if you can demonstrate it will continue. Self-employed newcomers may qualify with business registration documents and financial statements. We evaluate your complete financial picture to find the right lender for your situation.

Newcomers who qualify for insured mortgage programs (5% to 19.99% down payment) typically receive the same competitive rates as any other insured borrower, which are among the lowest rates available. This is because the mortgage insurance eliminates the lender's risk. If you are making a larger down payment on a conventional (uninsured) mortgage with limited Canadian credit, rates may be slightly higher. We compare rates across 40+ lenders to ensure you get the best rate available for your profile.

Buying a home on a student visa alone is challenging, as most lenders do not offer mortgage programs for international students without a co-signer. However, if you have a Canadian citizen or permanent resident co-signer (such as a family member), you may qualify. Students who have graduated and received a post-graduation work permit (PGWP) can access newcomer mortgage programs. We can advise on your options based on your specific immigration status.

As of January 2025, the Prohibition on the Purchase of Residential Property by Non-Canadians Act has been extended but includes significant exceptions. Permanent residents are fully exempt from the ban and can purchase any property. Work permit holders who have filed Canadian tax returns are also generally exempt. Temporary residents purchasing a primary residence in certain situations may also qualify. We stay current on all regulatory changes and can confirm whether any restrictions apply to your situation.