Immigrating to a new country is no easy feat and often involves countless financial hardships. One of the financial issues that immigrants face is that you cannot transfer a credit report and rating from one country to another, and instead must build it from scratch. This makes it difficult to qualify for credit products such as credit cards, lines of credit, business loans, and of course, mortgages.
Fortunately, there are many new to Canada mortgage programs available to make it easier to get into the Canadian housing market as a newcomer.
Key Points
1. Newcomers to Canada have a few options available to help them secure financing to buy a home.
2. Canada’s big banks (RBC, BMO, Scotiabank, TD, and CIBC) all offer mortgage programs made for newcomers, though the criteria can be stricter than for other buyers. Private mortgages are an alternative option for those who need more flexible criteria.
3. Many permanent residents can put down as little as 5%, while temporary residents and non-residents usually need a larger down payment.
4. Non-residents may need to wait to buy, since the Foreign Buyer Ban is in effect until 2027.
What Type Of Newcomers Can Get A Mortgage In Canada?
Not every newcomer is treated the same. Your immigration status is the first thing a lender looks at, and it decides which programs you can use and how much you will need to put down.
- Permanent residents and landed immigrants. This group has the easiest path. Once you have permanent resident (PR) status, most lenders treat you much like a Canadian citizen, and you can often qualify with as little as 5% down.
- Work permit holders. Temporary and foreign workers can qualify under many newcomer programs, but the criteria are stricter. You usually need a work permit that is valid for a set minimum term, plus a larger down payment. Some lenders will only consider you if your permit has enough time left on it.
- Study permit holders. Students face the toughest road. Most big-bank newcomer programs do not lend to study-permit holders, so you will often need a much larger down payment, a co-signer, or an alternative or private lender.
Because the rules vary by lender, it pays to read each bank’s fine print.
New To Canada Mortgage Programs
There are a few mortgage programs offered by various lenders that cater to newcomers to Canada. Each program has different rates, term lengths, eligibility, and benefits. Here is a quick visual overview of the programs from Canada’s big banks before we dig into each one.
Program names, rates, and requirements change over time, so confirm the current terms with the bank before you apply.
RBC Mortgage For Newcomers To Canada Program
RBC has different options for newcomers depending on their employment history and ability to save for a down payment.
For newcomers with a 20% down payment and two years of employment history, RBC might qualify you for a conventional mortgage. If you cannot save up 20% for your down payment, you will need to insure your mortgage. This can cost a couple of hundred dollars every month on top of your principal mortgage payments and interest.
For newcomers who do not have two years of employment history, the down payment requirement is much higher. Without it, newcomers will generally need the following:
- A down payment of at least 35%
- A letter of reference from a bank in your home country
- To have immigrated to Canada within 5 years
- Permanent resident status
- A minimum of 3 months of full-time employment in Canada
There are many benefits to RBC’s program, such as:
- No credit history required in Canada
- Quick approvals
- Competitive rates
- 30-year amortization periods
- One-on-one consulting with a mortgage specialist
BMO NewStart Program
BMO’s NewStart Program is built for permanent residents who immigrated to Canada within the last 5 years, as well as non-permanent residents who hold a valid work permit. Like the other newcomer programs, it is designed to work around a limited or non-existent Canadian credit history, so you can access mortgage financing while you are still building your credit here. BMO pairs it with newcomer banking support to help you get set up when you first arrive.
Scotiabank StartRight Mortgage Program For Permanent Residents
Scotiabank’s StartRight Mortgage Program is meant for newcomers who have been permanent residents for 5 years or less. Scotiabank offers:
- Conventional and insured financing
- Scotia Mortgage Protection
- A wide range of fixed and variable mortgage rate options
- Fixed-rate terms from 6 months to 10 years
TD New To Canada Program
TD’s New to Canada Program is open to permanent residents and work permit holders who have been in Canada for up to 5 years. Like the other big-bank programs, it is designed for buyers with limited or no Canadian credit history, and TD will look at alternative proof such as international credit reports and steady income. It also pairs with TD’s broader newcomer banking package, which can make it convenient if you want your chequing, credit card, and mortgage under one roof.
CIBC Newcomer To Canada Program Mortgage
CIBC has three mortgage programs for newcomers:
- CIBC Newcomer To Canada Program Mortgage. For newcomers with limited credit histories who have enough income to afford their mortgage payments.
- CIBC Newcomer To Canada Plus Program Mortgage. For newcomers who are permanently living in Canada, or Canadian citizens who were living abroad and are now permanently living in Canada. Applicants do not need a Canadian credit history to apply.
- CIBC Foreign Worker Program Mortgage. Specific to newcomers with a valid work permit, even if they do not have permanent residence or a Canadian credit history.
Can You Get A Mortgage With No Canadian Credit History?
Yes. This is the single biggest worry for most newcomers, and the programs above were built specifically for it. Since your credit score does not follow you across borders, lenders look at other proof that you handle money responsibly, such as:
- An international credit report from your home country
- 12 months of on-time bill payments, such as rent, utilities, phone, and insurance
- A reference letter from a bank in your home country
- Proof of steady income and traceable savings
Even though you can qualify without a Canadian credit history, building one helps you access better rates and more lenders down the road. You can build your credit history in Canada with a few simple habits:
- Get a secured credit card and pay the balance in full each month
- Keep your balances well below your credit limit
- Pay every bill on time, every time
- Avoid applying for several credit products at once
Mortgage Eligibility Criteria For Newcomers
Beyond your residency status, lenders weigh a handful of criteria to decide whether you qualify and how much you can borrow. Knowing these ahead of time helps you set a realistic budget. Here are the key eligibility criteria to apply for a newcomer mortgage in Canada.
Newcomer Mortgage Eligibility At A Glance
- You have immigrated to Canada within the last 5 years, which is the window for most “New to Canada” programs.
- Permanent residents qualify for both traditional and newcomer-specific mortgages with proof of status, such as a PR card or COPR.
- A minimum down payment of 5% for permanent residents, while non-permanent residents usually need at least 10%.
- Proof of steady income through pay stubs, job letters, or employment contracts, with 3 to 6 months of employment history often enough.
- A credit score of 660 or higher for the best rates, though programs exist for those with no Canadian credit history.
- Housing costs (mortgage, property tax, and utilities) at or under 39% of your gross income, and total debt payments under 44%.
The last two figures are known as your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. Your GDS ratio covers your housing costs alone, while your TDS ratio adds in your other monthly debts, such as car loans and credit card payments.
Private Mortgage Lenders For Newcomers
If the big banks and their newcomer programs turn you down, a private mortgage lender may still be able to help. Private lenders are individuals or companies that lend their own money, and they focus on the property and your down payment more than on your credit history or how long you have been in Canada. That makes them one of the few options open to study-permit holders and newcomers with very little Canadian history.
That flexibility comes at a price. Compared with a bank, private mortgage lenders usually charge:
- Higher interest rates
- Lender and broker fees, often 1% to 3% of the loan amount
- Shorter terms, frequently 1 to 3 years
Because of the cost, a private mortgage is best treated as a short-term bridge. The usual plan is to use it for a year or two while you build your Canadian credit and employment history, then refinance into a lower-rate mortgage with a bank once you qualify. A larger down payment, often 20% or more, improves your odds and helps keep the rate down.
How Much Of A Down Payment Do You Need As A Newcomer?
The amount you need to save for a down payment depends on your residency status. Generally speaking, non-residents must meet stricter criteria and make a larger down payment to reduce the lender’s risk. Permanent residents, on the other hand, can often qualify with the same minimums as Canadian citizens.
In general, the minimum down payment works out like this:
- 5% on the portion of a home price up to $500,000.
- 10% on the portion between $500,000 and $1.5 million.
- 20% on homes priced over $1.5 million, which cannot be insured.
As of December 2024, insured mortgages are allowed on homes priced up to $1.5 million (the cap used to be $1 million), which gives newcomers a bit more room in expensive markets. Depending on the lender and your status, the requirements can still vary, and newcomers without much employment history often need 35% down.
Mortgage Default Insurance For Newcomers
If your down payment is less than 20%, you are required to get mortgage default insurance. It protects the lender if you stop making payments, and the premium is added to your mortgage, so you pay it off over time rather than up front. Premiums generally run from about 2.8% to 4% of the mortgage amount, depending on the size of your down payment.
Canada has three mortgage default insurers, and each one runs a program made for newcomers. Your lender chooses which insurer to work with, but it helps to know the options.
| Insurer | Newcomer Program | What To Know |
|---|---|---|
| CMHC | CMHC Newcomers | Open to both permanent and non-permanent residents, with no minimum time in Canada required |
| Sagen | New to Canada Program | For permanent residents and work permit holders; non-permanent residents usually need 3 or more months of employment |
| Canada Guaranty | Maple Leaf Advantage | For newcomers within the last 5 years, usually with 3 or more months of employment |
What Documents Do You Need To Apply For A Mortgage As A Newcomer?
The application requirements for a newcomer are often more comprehensive than for a Canadian citizen. Without a banking, employment, and credit history in Canada, lenders usually require a lot of information and documentation. Here are some of the common documents lenders request:
- Permanent Resident status, Landed Immigrant status, or a valid work permit
- Proof of income
- Record of your down payment
- Purchase and sale agreement
- Employment history of at least three months
- Proof of rental payments and a letter from your landlord
- Records of payments to service providers, such as cell phone plans and utilities
- A reference letter from a financial institution, even one from your home country
- Bank statements
- Savings documentation
- An international credit report
Can I Get A Mortgage Without An Employment History In Canada?
Most mortgages require documentation of two years of employment history in Canada. It is much easier to get a mortgage with that history, but it is still possible without it. With RBC, for example, you can qualify with a 35% down payment if you also meet the following:
- Immigrated within the last 5 years
- Permanent resident status
- 3 months of employment history in Canada
- A letter of reference from a bank in your home country
Even though it is possible to get a mortgage without much employment history, you are usually better off working for two years first. It will likely take you about that long to save a 35% down payment anyway. And if you work for yourself rather than an employer, be aware that a self-employed mortgage comes with its own set of requirements.
Government Programs For First-Time Buyers
Many newcomers are first-time buyers too, so it is worth checking whether these federal programs can stretch your down payment further:
- Home Buyers’ Plan (HBP). Lets you withdraw up to $60,000 from your RRSP tax-free to put toward a first home, or up to $120,000 for a couple. You repay the amount to your RRSP over 15 years.
- First Home Savings Account (FHSA). Lets you save up to $8,000 per year, to a lifetime maximum of $40,000. Your contributions are tax-deductible, and withdrawals for a first home are tax-free.
Both programs work best once you have a Social Insurance Number, some Canadian income, and RRSP contribution room, so they usually come into play after you have been earning here for a while.
How To Get A Mortgage As A Newcomer: Step By Step
If you are just starting out, here is the path from arriving in Canada to getting the keys.
The Ban On Home Buying Among Non-Residents
Non-residents of Canada need to note that there is a ban on speculative foreign home buying that came into effect on January 1, 2023. It was introduced to open up more housing inventory for people living in Canada.
The Foreign Buyer Ban was loosened a few months later to let some newcomers buy a home. Exceptions to the ban include the following:
- Permanent residents
- Refugees
- Eligible temporary workers with a valid work permit
- Empty land zoned for residential properties
That said, the ban is still in effect, and it has been extended until January 1, 2027. This continues to affect many newcomers’ ability to purchase property in Canada.
Other Financing Programs Available To Newcomers
In addition to new to Canada mortgage programs, there are other financing programs available to eligible applicants.
Micro Loans
Companies like Windmill Microlending provide affordable small loans to newcomers to make it easier to access the funds needed to start a new life in Canada. Windmill Microlending offers loans up to $15,000, along with mentorship, career coaching, budgeting tools, and other support.
Immigration Loans Program (ILP)
The Government of Canada provides loans to immigrants, particularly refugees, through the Immigration Loans Program (ILP). This program provides newcomers with:
- Transportation loans to cover the cost of travel to Canada, plus accommodation and food before departure.
- Assistance loans to cover the cost of initial settlement and basic needs, such as rent, clothing, food, and utilities.
- Right of Permanent Residence Fee (RPRF) loans to cover the RPRF when applying for permanent residence.
Foreign Credential Recognition (FCR) Loan Program
The FCR Loans Program helps skilled immigrants break into the Canadian job market in their field. It provides financial assistance and career guidance to people having trouble finding work or getting their credentials verified in Canada. Loan amounts range from $1,000 to $30,000, with repayment terms of 1 to 10 years and competitive interest rates.
Final Thoughts
Newcomers face financial challenges while immigrating and adjusting to a new life that Canadian citizens might never imagine. Despite that, Canada has many banks and financial institutions with new to Canada mortgage programs built around newcomers’ circumstances. With a couple of years of building credit and employment history, and the support of these specialized programs, newcomers can get a mortgage and become homeowners.
Mortgage For Newcomers FAQs
Yes, it is possible to get a mortgage without a Canadian credit history, though it is harder. With RBC, for example, you can qualify as a newcomer who has been in Canada for less than 5 years. You will need to provide documents such as your passport, landing papers (work permit or visa), and Canadian PR card. Even so, it is worth building a Canadian credit history first, which you can do with things like a phone bill or a secured credit card.
Yes. Many big banks (also called A-lenders) have mortgage programs that consider the unique situations of newcomers. If a big bank will not lend to you, there are also alternative lenders like credit unions and online lenders to consider.
It depends on your status. Permanent residents can often put down as little as 5% on a home under $500,000, the same as Canadian citizens. Temporary residents and non-residents usually need more, and newcomers without two years of Canadian employment history often need around 35%.
Foreign buyers must pay an additional Non-Resident Speculation Tax (NRST) when buying property in some provinces. In Ontario, it is 25% of the purchase price on residential property anywhere in the province.
Not necessarily. The ban is in effect until January 1, 2027, but permanent residents, refugees, and eligible temporary workers with a valid work permit are exempt, so many newcomers can still buy.
References
- Government of Canada. (2026). Prohibition on the Purchase of Residential Property by Non-Canadians Act. Canada Mortgage and Housing Corporation. https://www.cmhc-schl.gc.ca/professionals/industry-innovation-and-leadership/industry-expertise/prohibition-purchase-residential-property-non-canadians
- Financial Consumer Agency of Canada. (2026). Making a down payment. Government of Canada. https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html
- Canada Mortgage and Housing Corporation. (2026). Mortgage financing options for new residents. https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/mortgage-loan-insurance-homeownership-programs/newcomers
- Canada Revenue Agency. (2026). First Home Savings Account (FHSA) and Home Buyers’ Plan (HBP). Government of Canada. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service.
