Mortgage for Newcomers to Canada — 2025 Guide

Can newcomers get a mortgage in Canada? Yes — but the rules differ based on your residency status and credit history. Here is everything you need to know.

Can Newcomers Get a Mortgage in Canada?

Yes — permanent residents, temporary workers, and even some international students can qualify for a Canadian mortgage. However, the requirements are stricter than for long-established Canadian residents, particularly if you have been in Canada for less than two years or have limited Canadian credit history.

The key variable is how long you have been in Canada and whether you have established a Canadian credit score. Lenders categorize newcomers into two groups: those with established Canadian credit (usually 2+ years of history) who qualify under standard mortgage rules, and those with limited or no Canadian credit history who face higher down payment requirements.

The 35% Down Payment Rule for Newcomers

If you have been in Canada for less than 2 years and/or have insufficient Canadian credit history, most lenders — and CMHC (Canada Mortgage and Housing Corporation), the federal mortgage insurer — will require a minimum 35% down payment instead of the standard 5–20%.

This is significant. On a $600,000 home, the difference between 5% ($30,000) and 35% ($210,000) is enormous. However, some lenders use international credit references to assess newer arrivals and may reduce the down payment requirement if you can provide a credit report from your home country and a strong employment letter.

Newcomer Mortgage Requirements by Status

Status	Min. Down Payment	Credit Check	Employment Required
PR — established credit (2+ years)	5%	Canadian credit score	Yes, Canadian income
PR — new, limited credit	35%	International reference accepted	Yes, with employer letter
Work permit holder	35%	International reference accepted	Yes, employer must confirm ongoing
International student	Typically not eligible	N/A	N/A

Banks With Strong Newcomer Mortgage Programs

Several major Canadian banks have dedicated newcomer mortgage products that accept international credit references and are more flexible about employment history:

• Scotiabank StartRight Mortgage: Accepts newcomers who arrived within 5 years, uses international credit references, requires 35% down for those under 2 years in Canada
• RBC Newcomer Mortgage: Similar flexibility, specialist advisors in major cities, accepts work and study permit holders
• TD Canada Trust: New to Canada mortgage options, accepts income from foreign employers if you are transferring to Canada
• BMO: International credit references accepted, dedicated newcomer banking centres in major cities

Using International Credit History

Some lenders will accept a letter of reference from your foreign bank or a credit report from your home country as part of the mortgage application. This does not replace a Canadian credit score but can supplement your application and potentially reduce the down payment requirement. Useful documents include:

• A letter from your home country bank confirming account history and payment record
• A formal credit report from your home country translated into English or French
• Evidence of rent payment history in Canada (lease agreements and bank statements showing rent payments)
• Documentation of international assets and investments

How to Prepare for a Newcomer Mortgage

The best strategy is to start preparing 12–24 months before you plan to buy. Focus on:

• Opening a Canadian bank account and credit card immediately upon arrival
• Building a 12-month payment history on at least one credit product
• Saving for a 35% down payment if you are buying within the first 2 years
• Documenting your employment income with T4 slips, pay stubs, and employer letters
• Keeping your debt-to-income ratio low — lenders prefer that your total debt payments are under 44% of gross income

First Home Savings Account (FHSA)

Canada's First Home Savings Account allows eligible first-time home buyers to save up to $40,000 tax-free for a home purchase. Contributions are tax-deductible (like an RRSP) and withdrawals for a home purchase are tax-free (like a TFSA). Newcomers who are Canadian residents and have not owned a home in Canada in the past four years may be eligible. This is an excellent savings tool to start using immediately upon arrival.