Mortgage for New Canadians and Immigrants

How newcomers to Canada can qualify for a mortgage — special programs, lender options, and what to prepare before you apply.

The Newcomer Challenge: Credit History and Income Documentation

Canada's mortgage system relies heavily on Canadian credit history and Canadian employment income documentation. New Canadians — whether permanent residents, work permit holders, or recent citizens — often lack the two-year employment and credit history that lenders prefer. However, Canada's major banks and CMHC all have specialized programs designed to help newcomers qualify for a mortgage sooner than standard criteria would allow.

CMHC's Newcomer Mortgage Programs

CMHC's insured mortgage programs have specific provisions for newcomers to Canada:

Residency Status	Min Down Payment	Special Requirements
Permanent Resident (recent)	5% (standard)	May use international credit history; employment letter accepted
Work permit holder (non-PR)	5% if employed in Canada	Confirmed full-time employment, valid work permit
Non-resident (foreign buyer)	35% minimum	Subject to Foreign Buyer's Ban in most cases

As of January 2023, Canada implemented the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which restricts non-residents and non-Canadians from purchasing residential property in Canada. Work permit holders who have worked full-time in Canada and filed taxes for two consecutive years are typically exempt.

Bank Newcomer Programs

All major Canadian banks have "newcomer" or "new to Canada" banking programs that extend preferential mortgage treatment to recent immigrants and permanent residents:

• RBC: Newcomer Advantage program — accepts alternative credit references (international credit bureau reports, utility payment history, bank references from home country)
• TD: New to Canada Banking Package — simplified qualification with employment letter and 3 months Canadian banking history
• Scotiabank: StartRight program — credit flexibility for newcomers within 3 years of arrival
• CIBC: Newcomer mortgage program — accepts reference letters from foreign banks as credit substitutes
• BMO: NewStart program — specialized underwriting for those without Canadian credit history

Building Canadian Credit Fast

If you are a newcomer without Canadian credit history, start building it immediately upon arrival:

• Open a Canadian bank account and apply for a secured credit card (deposit-backed, approved without credit history)
• Get a credit card from a major retailer (Canadian Tire, PC Financial) — these are often easier to obtain
• Pay all bills on time, every time — Canadian payment history builds quickly
• Keep credit card utilization below 30% of your limit
• Avoid applying for multiple credit products at once (each application triggers a credit inquiry)
• After 12–18 months of responsible credit use, you should have a credit score sufficient for mortgage application

What Documents Newcomers Need for a Mortgage

• Passport and immigration status documents (PR card, work permit, study permit)
• Canadian employment letter confirming position, salary, and employment start date
• Recent pay stubs (minimum 3 months)
• Canadian bank account statements (3–6 months showing down payment savings)
• International credit report (Equifax and Experian offer international history transfer in some countries)
• Reference letter from your bank in your home country (signed, on letterhead)
• Proof of down payment source (savings, gift, foreign asset liquidation)

Foreign Down Payments: Rules and Documentation

Many newcomers bring funds from their home country as a down payment. Canadian lenders will accept foreign-sourced down payments, but require documentation of the funds' origin. You will need to show: proof that the funds are legally yours (bank statements from your home country), documentation of the transfer (wire transfer receipts), and ideally, a 90-day history of the funds sitting in a Canadian account before application. Currency conversion records may also be required.

Non-Resident Co-Signers and Guarantors

If you don't yet have sufficient Canadian income or credit to qualify independently, a Canadian citizen or permanent resident co-signer can help. The co-signer's income and credit are included in the qualifying calculation. Be aware that the co-signer is legally responsible for the mortgage payments if you default, and the mortgage appears on their credit report — which can affect their own future borrowing capacity.