New to Canada? How to Get a Mortgage as a Newcomer or Immigrant

A practical guide for newcomers and immigrants to Canada on qualifying for a mortgage. Covers CMHC programs, foreign income documentation, credit history, residency timelines, and A vs B lender options.

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New to Canada? How to Get a Mortgage as a Newcomer or Immigrant

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Moving to a new country is already one of the biggest decisions you’ll ever make. Now add “buy a house” to the list, and things get overwhelming fast.

I get it. You’ve just arrived in Canada—or maybe you’re planning to arrive soon—and you’re hearing all kinds of conflicting advice about mortgages. Someone at work says you need two years of Canadian credit history. Your cousin says you need three years of tax returns. The internet says something else entirely.

Here’s the truth: newcomers to Canada can absolutely get a mortgage. There are programs designed specifically for you. But you need to know which doors to knock on and what paperwork to bring with you. That’s what this guide is for.

Just arrived in Canada and ready to buy your first property? We specialize in newcomer mortgage programs and can help you navigate CMHC options, foreign income documentation, and lender selection.

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The Newcomer Mortgage Programs You Need to Know About

Canada’s mortgage system actually has specific pathways for people who’ve recently arrived. The biggest one comes through CMHC—the Canada Mortgage and Housing Corporation—which insures mortgages for people who put down less than 20%.

CMHC has a newcomer program that lets you buy a home with as little as 5% down, even if you don’t have a long Canadian credit history. The key requirements are straightforward:

You must have permanent resident status or be a non-permanent resident with a valid work permit
You need to have been in Canada for at least a few months (varies by lender)
You need to show proof of income—either Canadian employment or a valid job offer
You need at least a minimum down payment (5% for properties under $500,000)

The other default mortgage insurers—Sagan (formerly Genworth) and Canada Guaranty—offer similar newcomer programs with slightly different qualifying criteria. Some are more flexible on the residency timeline, some want different documentation. That’s why working with a mortgage broker who knows these programs inside and out matters so much.

How Long Do You Actually Need to Be in Canada?

This is the question I hear most, and the answer depends on the lender and the program.

Lender Type	Typical Residency Requirement	Down Payment
A Lender (big banks) with CMHC newcomer program	As little as 0-3 months	5-10%
A Lender without newcomer program	Usually 2+ years	5-20%
B Lender	Varies widely—sometimes no minimum	20%+
Private Lender	No minimum	25-35%+

Some of the big banks have their own internal newcomer programs. These sometimes let you purchase with a very short time in Canada—even before you land, in certain cases. The trade-off is that these bank-specific programs have rigid criteria, and if you don’t fit perfectly into their box, you’re out of luck.

That’s where a mortgage broker earns their weight in gold. We have access to dozens of lenders, and we can match your specific situation to the right program. One lender might reject you while another rolls out the welcome mat.

Foreign Income: How to Make It Count

If you’ve just arrived, your Canadian income history is going to be thin. Maybe you just started a new job last month. Maybe you’re still working remotely for a company back home. The question is: can you use foreign income to qualify?

The short answer is yes, but with conditions.

For a CMHC-insured mortgage, most lenders want to see Canadian employment income. A valid job offer letter works, even if you haven’t started yet. The letter needs to include your salary, start date, and confirmation that the position is permanent or at least a long-term contract.

If you’re self-employed or earning income from outside Canada, things get more complicated. Some B lenders will consider foreign income if you can document it properly. “Properly” means:

Foreign tax returns (translated and notarized if not in English or French)
Bank statements showing the income hitting your account
Letters from your employer or accountant confirming your earnings
Proof that the income will continue after you’ve moved to Canada

Some lenders will also look at your foreign assets—savings, investments, equity in property back home—as proof that you’re financially stable, even if your current Canadian income is modest.

Have foreign income or assets you’re wondering how to document? Our team has experience working with newcomers from dozens of countries and can guide you through the specific documentation requirements.

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International Credit History: Does It Transfer?

Here’s a frustrating reality: your credit score from back home does not transfer to Canada. You could have an 850 FICO score in the US or a spotless record in the UK, and when you arrive in Canada, you essentially start at zero. For detailed strategies on building Canadian credit fast as a newcomer, see our complete step-by-step playbook.

But that doesn’t mean your foreign credit history is useless. Some lenders will accept an international credit report as a substitute for a Canadian credit history. CMHC’s newcomer program specifically allows this.

What you need is a credit report from a recognized agency in your home country. In the US, that’s from Equifax, Experian, or TransUnion. In the UK, it’s from Experian or Equifax UK. Most other countries have equivalent agencies.

The report should show:

At least two active trade lines (credit cards, loans, etc.)
A minimum 12-month history
Good payment history with no major delinquencies

If you can’t get a formal credit report, some lenders will accept alternative credit references—utility bills paid on time, rent payment history, cell phone bills. These are called “non-traditional credit” references, and they can save your deal when you don’t have a Canadian bureau file yet.

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A Lenders vs B Lenders: What’s the Difference for Newcomers?

In Canada, lenders fall into a few categories, and understanding them will save you a ton of frustration.

A Lenders are your big banks and major credit unions—TD, RBC, Scotiabank, BMO, CIBC, and National Bank. They offer the lowest interest rates and most favorable terms. Their newcomer programs are solid but rigid. You either fit the criteria or you don’t. There’s very little wiggle room.

B Lenders are alternative lenders that charge slightly higher rates but have far more flexibility. Companies like Home Trust, Equitable Bank, ICICI Bank Canada, and others specialize in situations that don’t fit the A lender mold. For newcomers, B lenders are often the answer when the big banks say no.

Here’s when a B lender makes sense for a newcomer:

You’ve been in Canada less than the A lender’s minimum residency period
Your income documentation doesn’t fit the standard templates
You’re self-employed or earning foreign income
Your down payment comes from foreign sources that are hard to document
You have no Canadian or international credit history that meets A lender standards

The interest rate on a B lender mortgage might be 1-2% higher than an A lender. That’s real money. But here’s the play: get in the door with a B lender now, build your Canadian credit and income history, then refinance with an A lender in a year or two. You pay a premium in the short term to get started building equity and wealth in Canada sooner.

Your Down Payment: Where It Comes From Matters

Canadian lenders care about where your money comes from. This isn’t just nosiness—it’s anti-money laundering regulations, and every lender must comply.

As a newcomer, your down payment is most likely coming from one or more of these sources:

Savings from your home country: You’ll need bank statements going back 90 days showing the funds, plus proof of the wire transfer to your Canadian account
Sale of property abroad: You’ll need the sale agreement, proof of proceeds, and evidence the money moved from the sale into your account
Gift from family: A signed gift letter confirming the money is a gift and not a loan, plus the donor’s bank statement showing they had the funds
Income earned in Canada: Standard bank statements showing regular deposits

The paper trail is everything. Start documenting now, even before you need the mortgage. Keep every wire transfer receipt. Screenshot your foreign bank balances. Save every statement. When mortgage time comes, you’ll thank yourself.

One tip that catches people off guard: if you receive a large deposit that you can’t explain with documentation, it can actually hurt your application. Lenders might see an unexplained $50,000 deposit and wonder where it came from. If you can’t prove it’s legitimate, they might not count it toward your down payment.

The Step-by-Step Process for Newcomers

Let me lay out exactly what the mortgage process looks like for someone who recently arrived in Canada.

Step 1: Get your documents in order. Before you even talk to a lender, gather your immigration documents (PR card, work permit, etc.), employment letter or job offer, pay stubs if you’ve started working, foreign bank statements, and any international credit reports.

Step 2: Talk to a mortgage broker. Not a bank. A broker. We shop your file across multiple lenders and match you with the best program for your situation. Banks only offer their own products—if you don’t fit, they send you away.

Step 3: Get pre-approved. This tells you how much you can afford and shows sellers you’re serious. For newcomers, pre-approval is especially important because it confirms a lender is willing to work with your specific situation.

Step 4: Find your property. Work with a real estate agent who understands your needs. If you’re also investing, make sure you’re running the numbers on rental income potential.

Step 5: Submit your full application. Your broker handles this. You’ll need to provide final documentation—the purchase agreement, updated income proof, and down payment confirmation.

Step 6: Close and get your keys. A real estate lawyer handles the legal transfer. Budget for closing costs: land transfer tax, legal fees, home inspection, and title insurance typically add up to 1.5-4% of the purchase price.

Common Mistakes Newcomers Make

I’ve seen these mistakes derail deals. Don’t let them happen to you.

Waiting too long to start building credit. The day you arrive in Canada, get a secured credit card. Use it for small purchases and pay it off every month. Your future mortgage application depends on this.

Moving money without a paper trail. If you’re bringing funds from overseas, use official banking channels and keep every receipt. Cash carried across the border or money moved through informal channels will be almost impossible to document for a mortgage.

Assuming you need years of history. Some newcomers wait years before even asking about a mortgage because they assume they can’t qualify. Programs exist specifically so you don’t have to wait. Ask now. The answer might surprise you.

Only talking to one bank. Every lender has different criteria for newcomers. Getting rejected by one bank means nothing. A broker can often find a lender that says yes to the exact same application.

Not budgeting for all the costs. The down payment is just part of it. You also need money for closing costs, moving expenses, and an emergency fund. Plan for the full picture.

How Investing Fits Into the Picture

If you’re reading this on the LendCity blog, there’s a good chance you’re not just looking to buy a home—you’re thinking about building wealth through real estate.

Good news: some newcomer programs allow you to purchase a rental property, not just a primary residence. The rules are different (you’ll typically need a larger down payment for an investment property), but it’s absolutely possible.

Here’s the smart play for newcomer investors: buy a property with a legal secondary suite. Live in one unit, rent out the other. The rental income helps you qualify for the mortgage, covers a chunk of your housing costs, and starts building your track record as a Canadian landlord.

When it’s time for your second property, you’ve already got Canadian credit history, income documentation, landlord experience, and equity building in your first property. The second deal is always easier than the first.

Ready to explore your newcomer mortgage options? Let’s discuss your timeline, income sources, and down payment to match you with the right lender program.

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Frequently Asked Questions

Can I get a mortgage in Canada with no Canadian credit history?

Yes. CMHC's newcomer program and several lenders accept international credit reports as a substitute. If you have a good credit history from your home country, bring a formal credit report showing at least 12 months of history with two or more trade lines. Some lenders also accept non-traditional credit references like utility bills and rent payments.

How much down payment do newcomers need in Canada?

With a CMHC-insured newcomer mortgage, you can put down as little as 5% on a property under $500,000. For properties between $500,000 and $1,499,999, you need 5% on the first $500K and 10% on the portion above that. Properties at $1.5 million or more require 20% down and are not eligible for mortgage insurance.

Do I need to be a permanent resident to get a mortgage?

Not necessarily. Permanent residents have the most program options, but people on valid work permits can also qualify with certain lenders. The terms may be slightly different—some lenders require a larger down payment from work permit holders. Non-residents (people not living in Canada) can also get mortgages but typically need 35% or more down.

Can I use income from my home country to qualify for a Canadian mortgage?

Some lenders will consider foreign income, especially B lenders and certain A lenders with newcomer programs. You'll need thorough documentation: foreign tax returns, bank statements, employer letters, and ideally proof that the income will continue. Most CMHC-insured newcomer programs prefer Canadian employment income, but a valid job offer letter works even if you haven't started yet.

How long do I need to be in Canada before applying for a mortgage?

It depends on the lender and program. Some bank newcomer programs let you apply within your first few months—or even before you arrive. CMHC newcomer programs generally require that you've recently arrived and have immigration status. B lenders may have no minimum residency period at all. A mortgage broker can identify which programs you qualify for based on your specific timeline.

What documents do I need for a newcomer mortgage?

The typical list includes: immigration documents (PR card, Confirmation of Permanent Residence, or work permit), employment letter or job offer, recent pay stubs, Canadian bank statements, proof of down payment and its source, international credit report, and government-issued ID. Some lenders may also ask for foreign tax returns or additional income documentation.

Is it better to go to a bank or a mortgage broker as a newcomer?

A mortgage broker is almost always the better choice for newcomers. Banks can only offer their own products, and if your situation doesn't fit their criteria, they'll simply decline you. A broker has access to dozens of lenders—including banks, credit unions, and alternative lenders—and can match your unique situation to the right program. There's no cost to you for using a broker, as we're paid by the lender.

Can newcomers buy investment properties in Canada?

Yes, but the requirements are tighter than for a primary residence. Most lenders require at least 20% down for an investment property regardless of your status. A smart first move is buying a property with a legal secondary suite—live in one unit and rent the other. This counts as owner-occupied, giving you access to better rates and lower down payment requirements while still generating rental income.

Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.

Written by

LendCity

Published

February 15, 2026

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11 min read

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