Best Mortgage Lenders for First-Time Home Buyers in Canada: How to Choose

The best mortgage lender for a first-time buyer is the one whose rate, terms and service fit your plans, and that usually means comparing several. This page explains the kinds of lenders in Canada, what to compare between them, and the options for newcomers. For current rates, see the best mortgage rates in Canada.

Types of mortgage lenders

Lender type	Examples	How you reach them	Typical strengths
Big banks	RBC, TD, Scotiabank, BMO, CIBC	Branch, phone, online	Branches, bundled banking, cashback offers, newcomer programs
Monoline lenders	First National, MCAP, RMG	Mostly through mortgage brokers	Mortgages only, often competitive rates
Online lenders	nesto	Online and phone	Digital application, posted low rates
Credit unions	Desjardins, Vancity, Coast Capital, Meridian	Branch or online, membership required	Local decisions, sometimes more flexible qualification
Alternative (B) lenders	Trust companies and alternative lenders	Through brokers	Accept lower credit scores or harder-to-prove income, at higher rates

See big bank vs monoline lender and types of mortgage lenders for more on each.

What to compare between lenders

Rate and term: compare the same term and type (for example, 5-year fixed) across lenders; a small rate difference adds up over a term. The mortgage payment calculator shows the effect on your payment.
Prepayment privileges: how much extra you can pay each year (as a lump sum or by raising your payment) without a penalty.
Penalty for breaking the mortgage: on a fixed rate, most lenders charge the greater of three months’ interest and an interest rate differential (IRD), and banks and monoline lenders calculate the IRD differently. This matters if you might move or refinance before the term ends; see how mortgage penalties are calculated.
Cashback: some lenders pay cash at closing in exchange for a higher rate or conditions; compare the extra interest with the cash. Offers change often, so confirm the current terms.
Pre-approval and rate hold: a pre-approval can hold a rate for a set period while you shop; see mortgage pre-approval.
Portability and assumability: whether you can take the mortgage to a new home or pass it to a buyer.

Options for newcomers

Several banks run mortgage programs for permanent residents and some work-permit holders who have little or no Canadian credit history, and CMHC insures mortgages for new residents using other evidence of creditworthiness. Terms and eligibility vary by lender and change, so compare the current programs. See the credit score you need for a mortgage for how lenders treat a thin credit file.

What a mortgage broker does

A broker takes one application and shops it to many lenders, including monoline lenders you can’t reach directly. Brokers are usually paid by the lender, though some charge a fee for harder files (always ask). A broker can’t offer a bank’s in-house products if the bank doesn’t work with brokers, so it can still be worth getting a quote from your own bank. See what a mortgage broker is.

Programs that apply whichever lender you choose

Program	What it gives you
First Home Savings Account (FHSA)	Deductible contributions of up to $8,000 a year ($40,000 in total) and a tax-free qualifying withdrawal
Home Buyers’ Plan (HBP)	Up to $60,000 from your RRSPs, repaid over 15 years
Home buyers’ amount	A $10,000 non-refundable credit claim
GST/HST new housing rebates	Relief on the tax on a new home, including the first-time buyers’ rebate
Provincial land transfer tax relief	Varies by province; see the province guides

Sources

The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 28, 2026. How we check facts.

Canada Revenue Agency: FHSA: Participating in your FHSAs
Canada Revenue Agency: RRSP: The Home Buyers' Plan
Canada Revenue Agency: Line 31270 – Home buyers' amount