Updated: April 2025  |  bremo.io financial guides

Mortgage for Newcomers to Canada — Programs and Requirements

Canada welcomes hundreds of thousands of new permanent residents each year, and many want to buy a home quickly. The challenge: most lenders want Canadian credit history, Canadian employment history, and Canadian income documentation — none of which newcomers have. Fortunately, several programs are designed specifically to help newcomers qualify for a mortgage.

Who Is Considered a Newcomer?

For most lender programs and CMHC purposes, a newcomer is typically defined as someone who became a permanent resident within the past 3-5 years. This includes:

• Permanent residents (all immigration streams)
• Some temporary residents with confirmed employment and strong evidence of intent to stay
• Refugees who have received protected person status

Non-permanent residents (student visa, work permit) face more restrictions. Some lenders will work with work permit holders, particularly those with long-duration permits or employer-specific situations.

The Core Challenge: No Canadian Credit History

Canadian credit bureaus (Equifax and TransUnion) track credit activity in Canada only. A perfect credit history in India, the Philippines, or the UK doesn't translate to Canadian credit scores. Newcomers often have zero Canadian credit history, which normally blocks mortgage qualification.

Newcomer mortgage programs work around this by accepting alternative documentation.

CMHC Newcomer Program

CMHC's newcomer mortgage program allows insured mortgages for permanent residents and non-permanent residents with a valid work permit, even with limited Canadian credit history. Key features:

• Minimum 5% down payment (standard insured mortgage rules apply)
• Alternative credit references accepted: international credit bureau reports, payment history for rent, utilities, phone, and other bills
• Must have a valid work permit or permanent resident status
• Employment letter confirming position, start date, and income
• Must meet standard stress test and income requirements

Major Bank Newcomer Programs

Several major Canadian banks have specific newcomer mortgage products:

RBC Welcome Home Advantage

Available to newcomers within 5 years of arriving. Uses international credit history and accepts various non-Canadian income documentation. Available at branches with specific newcomer advisors.

TD New to Canada Banking Package

Includes mortgage qualification assistance for newcomers with limited Canadian credit history. Uses a combination of Canadian banking history and alternative references.

Scotiabank StartRight Program

One of the more extensive newcomer programs. Includes mortgage products, credit cards for building credit, and financial advice for newcomers.

BMO and CIBC

Both offer newcomer mortgage programs with similar alternative documentation flexibility. Check with a branch or mortgage specialist for current terms.

What Documents Newcomers Typically Need

• Proof of status (permanent resident card, work permit)
• Passport
• Employment letter (full-time employment preferred)
• Recent pay stubs (minimum 3 months of Canadian employment preferred)
• International credit report (Equifax or TransUnion international, if available)
• Bank statements showing down payment history (typically 90 days)
• Letter of reference from your home country bank
• Proof of payment history: rent receipts, utility bills, phone bills from previous 12 months

Building Canadian Credit Fast

The faster you build Canadian credit, the better your mortgage options. Strategies:

1. Open a Canadian bank account immediately
2. Get a secured credit card (deposit-backed) and use it for small purchases, paying in full monthly
3. Add your name to utility bills, phone plans, and any subscriptions in your name
4. After 6-12 months of clean credit, apply for a regular credit card
5. Avoid multiple credit applications at once; each hard inquiry can lower your score

Down Payment Requirements for Newcomers

Standard Canadian down payment rules apply: 5% minimum for homes under $500,000, with CMHC insurance required for less than 20% down. Some lenders require newcomers to have a larger down payment — 10% or 20% — especially for non-permanent residents. A larger down payment also reduces the lender's risk when Canadian credit history is limited.