New to Canada Mortgages
The short version
You do not need years of Canadian history to buy a home here. Newcomer mortgage programs exist specifically for people who have arrived recently, and they accept alternatives to a Canadian credit score: an international credit report, a letter from your bank overseas, or twelve months of proof that you have paid rent and utilities on time. Permanent residents generally have the widest choice of lenders and can access the same minimum down payment as anyone else, and the insured programs extend the same minimum to valid work permit holders, though some lenders require more on their own account. The most common obstacle is not status or credit, it is documenting where the down payment came from, particularly when money is transferred from abroad. Start gathering that paperwork early. Approvals are on approved credit.
Your immigration status shapes the options
It does not decide whether you can buy, but it decides how many lenders will look at the file.
Permanent residents have the most straightforward path. Most lenders treat a permanent resident with Canadian employment income much like any other borrower, and newcomer programs typically allow the standard minimum down payment.
Work permit holders can absolutely get a mortgage. Fewer lenders participate, the down payment expectation is usually higher, and the lender will want to see meaningful time remaining on the permit. A permit expiring in three months is a problem worth solving before you shop.
Applicants still in process sit somewhere between the two, and it depends heavily on the stage. Worth a conversation before you assume either way.
Credit when you have no Canadian score
This is the part that worries newcomers most and it is usually the easiest to solve. Lenders understand perfectly well that someone who arrived eighteen months ago has a thin Canadian file, and newcomer programs are built around that.
In place of a score, they will generally accept any of the following:
- An international credit report from your home country, which several agencies can produce for Canadian lenders
- A reference letter from your overseas bank confirming your accounts and payment history
- Twelve months of proof that you have paid rent on time here, usually cancelled cheques or bank records plus a letter from the landlord
- Twelve months of utility, phone or insurance payments made on time
Meanwhile, start building Canadian credit. A secured credit card used lightly and paid in full every month builds a usable score faster than most people expect, and it widens your options considerably by the time you buy.
Down payment, and proving where it came from
The amount follows the usual rules, subject to what your status allows. The harder part is the ninety day history every lender requires, which exists to satisfy anti money laundering obligations rather than because anyone doubts you.
Money transferred from overseas needs a clear trail. Expect to provide statements from the originating account abroad, the wire transfer record, and an explanation of where those funds came from originally, whether that is salary, a property sale or a family gift.
Two practical points. Move the money into a Canadian account early, so the ninety day clock is already running when you apply. And keep every statement from the sending side, because obtaining them later from a bank in another country and another language is genuinely difficult.
Gifted funds from family abroad are acceptable to most lenders, with a signed gift letter confirming the money is a gift rather than a loan.
Proving income
Most lenders want Canadian employment income. A permanent full time role with a completed probation period is the cleanest position. If you are still on probation, some lenders will proceed and others will not, which is exactly the kind of difference a broker is useful for.
Income earned and taxed abroad is generally discounted or excluded entirely for a standard mortgage. If most of your earnings are still overseas, the conversation shifts toward alternative lenders, and our page on alternative lending explains how they assess a file.
If you have started a business since arriving, the self-employed page is the more relevant one.
Newcomer is not the same as non-resident
These get confused constantly and the distinction matters. A newcomer lives in Canada, works here and pays tax here. A non-resident lives elsewhere and is buying Canadian property from abroad.
Non-resident purchases face a different set of rules, larger down payment requirements, a much smaller pool of lenders, and potentially additional taxes depending on the property and the buyer. If you are not living here, tell us at the outset, because almost nothing on this page will apply to you.
Getting ready
- Open a Canadian bank account and move your down payment into it as early as you reasonably can
- Keep every document from the sending bank if funds are coming from abroad
- Get a secured credit card and use it lightly, paying the balance in full each month
- Keep proof of rent and utility payments, even if you think you will not need them
- Request an international credit report if one is available in your home country
When you are ready, a pre-approval tells you what you can actually spend here, which is usually a more useful number than anything you will find online.
What size mortgage would you qualify for?
Your maximum mortgage after the federal stress test, based on your income, your debts and the debt service limits lenders apply.
Estimates only, not a rate offer or an approval. Approvals are OAC. See every calculator.
Common questions
Can I buy a home without Canadian credit history?
Yes. Newcomer programs exist precisely for this. In place of a Canadian credit score, lenders will accept an international credit report, or letters from your bank overseas, or twelve months of proof that you have paid rent and utilities on time here. You do need something, but it does not have to be a Canadian score.
Do I need to be a permanent resident?
Not necessarily. Permanent residents have the widest choice of lenders and programs. Work permit holders qualify under the same insured newcomer programs at the same minimum down payment, though some individual lenders apply their own higher figure and ask for more documentation. Both routes are well established, and both programs require that you arrived in Canada within the last five years.
How much down payment do I need?
The insured newcomer programs allow the same minimum as anyone else, five percent on the first $500,000, for permanent residents and for holders of a valid work permit alike. Some lenders set a higher bar for work permit holders on their own account. The larger the down payment, the wider your choice of lender.
Can I use money I bring from overseas?
Yes, and it is very common. The lender needs to trace it. Expect to show bank statements from the originating account, the transfer record, and where the funds came from in the first place. Start collecting that paperwork before you move the money, because reconstructing it afterwards is much harder.
Does my foreign income count?
Usually not for a standard mortgage. Most lenders want Canadian employment income. There are exceptions, and alternative lenders are more flexible, but plan on the assumption that income earned and taxed abroad will be discounted or excluded.
How long should I wait after arriving?
You do not have to wait years. Many newcomer programs are designed for people within their first three to five years in Canada, and some buyers purchase within months of arriving. What matters more than time is having verifiable income here and a documented down payment.