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New to Canada Mortgage

New to Canada Mortgage Programs: A Newcomer's Guide

Whether you're a Permanent Resident or on an eligible work permit, insured newcomer programs (CMHC, Sagen, Canada Guaranty) and the Big-6 banks' newcomer offers can let you buy with as little as 5% down and accept international credit history. We speak 15+ languages in-house.

Permanent Resident · 5% downWork permit acceptedInternational credit OK15+ languagesOpen FHSA from day 1Foreign-buyer tax refund
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Written by the Mortgage Squad Advisors Editorial Team · Reviewed by Surrayya Afzal, Principal Broker, FSRA #M14001433 · Updated September 2026

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Most Canadian banks send newcomers to a salaried branch employee who only knows the standard T4 mortgage product. They’ll ask for a Canadian credit score you don’t have, or insist on 35% down because they don’t know their own bank’s newcomer program. The result: declined applications, missed opportunities, and the false belief that you need to wait 5 years to buy. Newcomer programs exist precisely so you don’t have to wait — but you need a broker who knows the playbook.

The Toronto skyline across Lake Ontario at sunset

The mortgage insurers (CMHC, Sagen, Canada Guaranty) and the Big-6 banks (RBC, TD, Scotiabank, BMO, CIBC and National Bank) all offer newcomer options. Each has different rules around credit, employment, permit type and down payment source. We know which program fits your immigration status, country of origin, employment story, and timing — including the lenders that accept international Equifax/TransUnion reports and the ones that don’t require any Canadian credit at all.

What is a newcomer mortgage?

A newcomer mortgage is a home loan designed for people who have recently moved to Canada and have little or no Canadian credit history. Every major Canadian bank runs one. They accept international credit reports or alternative credit in place of a Canadian score, and permanent residents can buy with as little as 5% down — the same minimum as any Canadian citizen.

Instant check · no credit pull

Which newcomer program fits you?

Status drives the program, the down payment, and whether foreign-buyer rules apply.

Your status
Down payment10%
5%35%
Major-bank and monoline newcomer programs
Program path
5% down (insured)
Typical minimum down
Yes — most newcomer programs
International credit accepted?
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Newcomer mortgage programs compared

The three mortgage insurers each run a newcomer program, and every Big-6 bank offers newcomer mortgage options on top of them. The insurer rules below are published; bank and credit-union rules vary by lender, status and file, so we confirm them for you before you make an offer.

Canadian newcomer mortgage programs compared by who they serve, minimum down payment and how credit is established.
ProgramWho it servesMinimum down paymentCredit without Canadian historyNotes
CMHC NewcomersPermanent residents, and non-permanent residents authorized to work in Canada5% on 1-2 units; 10% on 3-4 unitsInternational credit report or alternative credit may be consideredAt least one borrower or guarantor needs a 600+ score where a Canadian score exists; the purchase must comply with the Non-Canadians Act.CMHC
Sagen New to CanadaBuyers who have recently immigrated or relocated to Canada5% on 1-2 units; 10% on 3-4 unitsInternational credit bureau, or 12 months of bank statements showing payment consistencyStandard income and employment verification applies.Sagen
Canada Guaranty Maple Leaf AdvantageNew immigrants with limited documented credit history5% on 1-2 units; 10% on 3-4 unitsInternational credit bureau, or 12 months of Canadian rent history30-year amortization only for first-time buyers or new builds.Canada Guaranty
Big-6 bank newcomer offersRBC, TD, Scotiabank, BMO, CIBC and National Bank each run newcomer optionsFrom 5% when insured; more on some permit typesVaries by bankRules on permit type, time in Canada and down-payment source differ by bank; we confirm the current terms for your file.
Credit unionsVariesVaries by credit union and fileVariesProvincially regulated; some are flexible on permits and set their own rules.

Down-payment minimums for 1-2 unit homes follow the national rules: 5% of the first $500,000, 10% from $500,000 to $1.5M, and 20% at $1.5M or more (insurance isn’t available at that price). Work-permit holders must also fit an exception to the federal ban on non-Canadians buying residential property, in force until January 1, 2027 (for example, 183+ days left on the permit and no other residential property purchased).Regulations

How to get a new to Canada mortgage, step by step

A new to Canada mortgage follows the same sequence whether you landed last month or two years ago. Doing it in this order stops a missing document or a tax surprise from derailing an approved file.

  1. Confirm your status and program fit

    PR card or work permit type, employer letter, country of origin and landing date. Permanent residents, and work-permit holders who fit the federal non-Canadian buyer exceptions, can buy with as little as 5% down on insured 1-2 unit homes; some lender programs ask for more on certain permits.

  2. Open Canadian accounts early

    Around 90 days of Canadian banking history makes underwriting smoother. Once you are a tax resident, open an FHSA so contributions start working toward your down payment.

  3. Show your credit history

    Use an international Equifax or TransUnion report, alternative credit such as rent, utilities and telecom, or a newcomer program that doesn’t need Canadian credit at all.

  4. Get pre-approved

    A mortgage pre-approval tells you your real budget and the payments you qualify for before you make an offer.

  5. Document your down payment

    Move funds into a Canadian account at least 90 days before closing, or document the international transfer trail and source of funds so the lender can meet FINTRAC requirements.

  6. Check NRST, then match the lender and close

    Permanent residents are exempt from Ontario’s NRST; work-permit holders generally pay it but may qualify for a rebate. We then pair your file with the program that fits and take it through to closing.

On this page
  1. Program eligibility
  2. Required documents
  3. Down payment rules
  4. Building Canadian credit
  5. Step-by-step: from status to funded
  6. Why the right program depends on where you're buying
  7. Buying with no Canadian credit: the three accepted paths
  8. Permanent resident vs. work permit: how your status changes everything
  9. Down payment from abroad: the 90-day rule and source-of-funds
  10. NRST and the rebate: what newcomers pay, and get back
  11. FHSA and the Home Buyers' Plan: stacking your down payment from year one
  12. FAQ

Program eligibility

Newcomer mortgage program eligibility is broader than most banks admit. Permanent residency status qualifies you for the same 5%-down, best-rate mortgage options as any Canadian. On a valid work permit (ideally with full-time employment) you can still buy through insured newcomer programs from 5% down or through the Big-6 banks’ newcomer offers, provided the purchase fits an exception to the federal non-Canadian buyer ban (such as 183+ days left on your permit). There is no minimum time in Canada required to get a mortgage; many clients buy within 6–12 months of landing once employment and banking are established.

Required documents

The required documents for a newcomer file are straightforward: government photo ID, proof of status (PR card or work permit), a letter of employment and recent pay, 90-day proof that your down-payment funds are in place, and an international or alternative credit history. Self-employed newcomers add two years of business tax documents and income documentation. We send a precise checklist after a 5-minute intake so nothing stalls the file at the financial institution.

Down payment rules

The down payment rules for a newcomer buying your first home match those for any buyer: the minimum down payment on the purchase of residential property is 5% of the first $500,000, 10% on the portion to $1.5M, and 20% at $1.5M or more (owner-occupied 3-4 units: 10% minimum). Under 20% down, your mortgage loan is insured with mortgage default insurance (CMHC, Sagen or Canada Guaranty), and that premium is added to your mortgage payments. On a valid work permit, insured programs can start at 5% down, though some lenders ask for more depending on your permit. Model the numbers with our affordability calculator and CMHC premium calculator.

Building Canadian credit

You do not need years of Canadian history to qualify. Building Canadian credit starts on day one: even without a Canadian score, a secured credit card and one reporting tradeline begins building the history a financial institution wants to see, and lenders will meanwhile accept an international Equifax or TransUnion report or alternative credit (rent, utilities, telecom). Getting a mortgage pre-approval early tells you the interest rates and mortgage payments you qualify for while your Canadian file grows.

Step-by-step: from status to funded

The step-by-step path is simple. First, confirm your status and get a mortgage pre-approval so you know your budget before you shop. Second, build your file — documents, down payment, and Canadian credit. Third, match the right lender program to your immigration status and close. First-time home buyers new to owning a home in Canada can also stack the FHSA and RRSP Home Buyers' Plan (below) to boost the down payment.

Why the right program depends on where you're buying

Every down-payment rule is a percentage of a local price, so the same program is easy in one market and out of reach in another. In a higher-priced market like Burlington, a buyer asked for 20% down needs a far larger sum than the same buyer asked for 5% on an insured purchase, which is why matching the right program matters more there than in a cheaper market. If you are settling west of Toronto, the mortgage options in Burlington page carries the local figures.

Matching your immigration status, country of origin, employment story and timing to the correct program is the entire game — and it's what Mortgage Squad Advisors does every day, across 100+ lenders. If you want the longer read first, the newcomer to Canada guide walks through every step from landing to closing, and our complete guide to working with a mortgage broker in Canada explains how the broker side works.

Thin Canadian credit is not the same as bad credit, but if your file has a past blemish, see how a bad credit mortgage broker can help. Planning to buy a rental once you are settled? Read what an investment property mortgage in Canada requires. Find your local mortgage broker through our mortgage broker pages for Toronto, Vaughan and Mississauga.

Buying with no Canadian credit: the three accepted paths

A thin or empty Canadian credit file is the single most common reason newcomers are wrongly told to wait. There are three lender-accepted ways around it. (1) An international credit report — Equifax and TransUnion pull bureau data from 90+ countries, so your home-country history can carry the file. (2) Alternative credit — twelve months of on-time rent, utilities, telecom, and insurance payments, documented with letters or statements, can stand in for a bureau score. (3) Dedicated newcomer programs that don't require Canadian credit at all, relying instead on income, down payment, and status.

We'll tell you which path your situation supports — and how to start building a Canadian score in parallel (a secured card and one reporting tradeline can establish a usable history within months).

Permanent resident vs. work permit: how your status changes everything

Your immigration status drives your down payment, your program, and your tax exposure — and "status" here means the federal definition, the one IRCC applies, not a lender's shorthandIRCC. Permanent residents are treated almost identically to long-term Canadians: as little as 5% down on insured mortgagesCMHC, and — importantly — exempt from the Non-Resident Speculation Tax. Work-permit holders can buy too: CMHC insurance covers non-permanent residents authorized to work in CanadaCMHC, although some lenders ask for more down on certain permits, and the purchase must fit an exception to the federal non-Canadian buyer banRegulations. Closed permits tied to an established Canadian employer are the easiest; open permits (SOWP) and post-grad permits (PGWP) need the more flexible programs.

If you're mid-transition — say, PR application in progress on a work permit — there are timing and rebate considerations worth planning around before you make an offer. We map your status to the program before you fall in love with a listing you can't yet finance.

Down payment from abroad: the 90-day rule and source-of-funds

Money arriving from outside Canada is completely acceptable — the paperwork is what trips people up. Two clean paths exist. The simplest: transfer your down payment into a Canadian account at least 90 days before closing, so the lender sees seasoned Canadian-dollar funds. The alternative, when 90 days isn't possible: document the international transfer trail — wire confirmations, originating account statements showing history, and a source-of-wealth letter explaining how the funds were earned or accumulated.

Either way there are FINTRAC anti-money-laundering requirements the lender must satisfy. We line up exactly what's needed up front, in your language, so a fully approved file doesn't stumble at the lawyer's office days before closing — the most avoidable and most heartbreaking way for a newcomer purchase to fall apart.

NRST and the rebate: what newcomers pay, and get back

The Non-Resident Speculation Tax applies to buyers who are neither Canadian citizens nor permanent residents — so whether you owe it turns entirely on your IRCC status on the day of registrationIRCC. In Ontario it is 25% and applies province-wideOntario. British Columbia's equivalent is a 20% additional property transfer tax, and this is the detail most pages get wrong: it applies only in five specified regional districts — Metro Vancouver, the Capital, Fraser Valley, Central Okanagan and Nanaimo — not across the whole provinceBC. Buy in Kamloops or Prince George and it does not apply at all. Permanent residents are exempt from both. Work-permit holders are generally subject — but Ontario offers a rebate if you become a permanent resident within four years of the purchase, hold the property alone or with your spouse, and the home is your principal residence. That's a large sum to plan around, and the rebate has documentation and timing rules that are easy to miss.

We run the NRST math and rebate eligibility before you sign anything, so there are no five-figure surprises on closing and you keep the paper trail the rebate later requires.

FHSA and the Home Buyers' Plan: stacking your down payment from year one

The moment you become a Canadian tax resident — which most permanent residents and many tax-filing work-permit holders are — two of the best down-payment tools in the country open up. The First Home Savings Account lets you contribute up to $8,000/year ($40,000 lifetime), deduct it like an RRSP, and withdraw it tax-free for a first home like a TFSA. The RRSP Home Buyers' Plan adds up to $60,000. A couple can combine both across two people for a substantial tax-advantaged down payment.

Most newcomers don't hear about these until years in. Open the FHSA in your first tax year and the compounding head-start is real. We build the contribution and withdrawal timing into your purchase plan — in 15+ languages, so nothing is lost in translation.

What you get

Why newcomers choose Mortgage Squad Advisors.

Insured newcomer programs (CMHC, Sagen, Canada Guaranty), Big-6 bank newcomer offers and credit union options
International credit reports accepted (Equifax International, TransUnion International — coverage in 90+ countries)
Work-permit holder programs for SOWP (open work permits), PGWP (post-grad), and closed/employer-specific permits
15+ languages in-house, including English, Punjabi, Urdu, Hindi, Cantonese, Tagalog, Spanish, Russian, Polish and Bengali
Newcomer FHSA + RRSP HBP planning — open both accounts as soon as you become a tax resident
5% down on insured 1-2 unit purchases for permanent residents and eligible work-permit holders (CMHC, Sagen, Canada Guaranty)
International letter of employment accepted at certain lenders (transferring with your employer to Canada)
Down payment from abroad — we handle source-of-funds documentation and FINTRAC compliance
Alternative credit acceptable: rent history, utility bills, cell phone, Canadian insurance payment history
Maya, our AI assistant, answers questions in your preferred language 24/7
How it works

Three simple steps, no pressure.

  1. 1

    Confirm your status

    PR card, work permit type, employer letter, country of origin, landing date. 10-minute intake — we’ll tell you exactly which newcomer programs you qualify for and which lenders fit your file.

  2. 2

    Build your file

    We pull the right documentation: international credit report (Equifax/TransUnion International), alternative credit letters (rent, utilities, telecom, insurance), Canadian banking history (90+ days helps), employer confirmation, and proof of down payment source.

  3. 3

    Match the program

    Each lender’s newcomer program has different rules around credit, tenure, and permit type. We pair you with the most accommodating lender for your specific file — sometimes that’s a Big-6, sometimes a credit union, sometimes a specialty newcomer program at a monoline.

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FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

I’m a permanent resident. How much down payment do I need in Canada?
For a 1-2 unit home: 5% on the first $500,000 of purchase price, 10% on the portion from $500K to $1.5M, and 20% at $1.5M or more. Owner-occupied 3-4 unit homes need at least 10% down. The under-20% mortgage is insured by CMHC, Sagen, or Canada Guaranty (premium financed into the loan, typically 2.80-4.00% depending on LTV). Insured mortgages for PRs are generally priced like any other insured borrower’s.
I’m on a work permit. Can I qualify for a mortgage?
Yes. CMHC insurance is available to non-permanent residents authorized to work in Canada, so an insured 1-2 unit purchase can start at 5% downCMHC, although some lenders ask for more depending on permit type. You must also fit an exception to the federal ban on non-Canadians buying residential property (in force until January 1, 2027): typically 183+ days left on your work permit and no more than one residential property purchasedRegulations. Closed permits with an established Canadian employer are usually easier than open permits (SOWP) or short-tenure files.
I have no Canadian credit history. What are my options?
Three paths: (1) International Equifax or TransUnion International report — works for 90+ countries; (2) Alternative credit letters from your home country (mortgage payment history, telecom, utilities, insurance, rent); (3) Lender-specific newcomer programs that can work without a Canadian credit history.
Can my down payment come from outside Canada?
Yes. Two acceptable paths: (a) Transfer funds to your Canadian bank account at least 90 days before closing (most lenders), or (b) Provide documented international transfer history — wire confirmations, originating account statements showing 90-day history, and a source-of-wealth letter explaining how funds were earned/accumulated. We coordinate FINTRAC compliance with the lender.
Do I need a Canadian co-signer or guarantor?
Not always — most major newcomer programs do NOT require one. A co-signer or guarantor may be required if: your work permit has under 12 months remaining, your employment tenure is under 6 months, your income is variable, or your file has multiple soft spots. We’ll tell you upfront if you need one.
What languages does Mortgage Squad Advisors speak?
In-house advisors speak 15+ languages, including English, Punjabi, Urdu, Hindi, Cantonese, Tagalog, Spanish, Russian, Polish and Bengali. Maya AI handles 50+ languages 24/7, including French, Arabic, Mandarin, Tamil, Vietnamese, Korean, Farsi/Dari, Italian, Portuguese, and Turkish — useful for late-night questions in your preferred language.
How long after landing in Canada can I buy a home?
Day 1, technically — there’s no minimum residency for a mortgage. Practically, having 90 days of Canadian banking history makes underwriting much smoother because lenders can see your down payment in Canadian dollars. Many newcomer clients buy within 6-12 months of landing once they have employment and banking established.
What’s the FHSA and can I use it as a newcomer?
Yes — any Canadian tax resident (including permanent residents and many work-permit holders who file Canadian taxes) can open a First Home Savings Account. Contribute up to $8,000/year, $40,000 lifetime, fully tax-deductible like an RRSP, withdraw tax-free for a first home like a TFSA. The single best newcomer down-payment vehicle if you’re working in Canada.
Does my international employment count toward Canadian mortgage qualification?
At most major lenders, yes — if your employer transferred you to Canada or you have a confirmed Canadian employment offer, your overall employment tenure (including international time with the same employer) counts. Some lenders accept ‘qualifying experience’ from international work history in the same field even with a new Canadian employer. We know which lenders are flexible here.
What about NRST (Non-Resident Speculation Tax) — does it apply to me?
It applies to buyers who are neither Canadian citizens nor permanent residents. Permanent residents are exempt. In Ontario it is 25% and applies everywhere in the province. British Columbia’s equivalent is 20% but only in five regional districts — Metro Vancouver, Capital, Fraser Valley, Central Okanagan and Nanaimo — so much of BC is unaffected. Work-permit holders are generally subject, but Ontario rebates it if you become a PR within four years of the purchase, hold the property alone or with your spouse, and live in it as your principal residence. We explain the math and rebate eligibility before you sign anything.

Related products

Newcomer to Canada: full guideComplete guide to working with a mortgage broker in CanadaBad credit mortgage broker CanadaInvestment property mortgageFind your local mortgage brokerFirst-time buyer programsNon-resident / foreign buyerSelf-employed mortgageAffordability calculatorLand transfer tax + NRSTCMHC premium calculatorStress test calculatorBank vs broker

New-to-Canada mortgage by city

Lender appetite, property values and timelines differ from market to market. Each page below applies this product to one city’s own sourced price data and local lending picture.

Related guides

Go deeper on this topic.

6 Mortgage Tips for Newcomers to Canada (2026)

Sources & references

Figures on this page are sourced below and re-checked each quarter. Rates, insurer rules and lender policies change — confirm anything you plan to act on with a licensed advisor.

  1. 1. Government of Ontario, Non-Resident Speculation Tax: rebates and refunds (Accessed August 2026) — NRST is 25% effective October 25, 2022, applies across Ontario, does not apply to permanent residents, and may be rebated where the buyer becomes a permanent resident within four years of registration.
  2. 2. Government of British Columbia, Additional Property Transfer Tax for Foreign Entities and Taxable Trustees (Accessed August 2026) — British Columbia's 20% additional property transfer tax applies only in five specified regional districts — Capital, Fraser Valley, Metro Vancouver, Central Okanagan and Nanaimo — not province-wide.
  3. 3. Canada Mortgage and Housing Corporation (CMHC), Mortgage Loan Insurance for Consumers (Accessed August 2026) — Mortgage default insurance is required where the down payment is under 20%, and CMHC publishes the qualification rules and premium rates that apply.
  4. 4. Canada Mortgage and Housing Corporation (CMHC), Newcomers to Canada — Home Buying (Accessed August 2026) — CMHC's own guidance for newcomers on buying a first home in Canada, including how mortgage default insurance and the down-payment minimums apply to people who have recently arrived.
  5. 5. Immigration, Refugees and Citizenship Canada (IRCC), Understand permanent resident status (Accessed August 2026) — The federal definition of permanent resident status, and the distinction between a permanent resident and a temporary resident on a work or study permit — the status categories that determine which newcomer mortgage program applies and whether the Non-Resident Speculation Tax is owed.
  6. 6. Canada Mortgage and Housing Corporation (CMHC), CMHC Newcomers (mortgage loan insurance) (Accessed September 2026) — CMHC insurance is available to permanent residents and to non-permanent residents authorized to work in Canada: up to 95% LTV on 1-2 units and 90% on 3-4 units, with alternative credit considered.
  7. 7. Sagen, New to Canada Program (Accessed September 2026) — As little as 5% down (95% LTV on 1-2 units, 90% on 3-4 units); creditworthiness by international bureau or 12 months of bank statements.
  8. 8. Canada Guaranty, Maple Leaf Advantage (Accessed September 2026) — New immigrants with limited credit history can buy with as little as 5% down; international bureau or 12 months of rent history.
  9. 9. Government of Canada (Justice Laws), Prohibition on the Purchase of Residential Property by Non-Canadians Regulations (SOR/2022-250) (Accessed September 2026) — Work-permit exception: 183+ days of validity remaining on the date of purchase and no more than one residential property purchased. The ban is in force until January 1, 2027 (CMHC).

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