Canada welcomes over 400,000 new permanent residents per year, and buying a home is a top priority for many newcomers. Canadian lenders have created specific programs that accommodate the unique challenges immigrants face — no Canadian credit history, foreign-sourced down payments, and unfamiliar qualification processes.
Newcomer mortgage programs compared
Eligibility windows
| Lender / Program | Eligible Applicants | Time in Canada | Minimum Down |
|---|---|---|---|
| CMHC New to Canada | PR holders, work permit holders | Within 5 years of landing | 5% (PR), 10% (work permit) |
| RBC Newcomer Program | PR, work permit, refugees | Within 5 years of landing | 5% (PR), 10–20% (work permit) |
| TD New to Canada | PR, work permit | Within 5 years of landing | 5% (PR), 10% (work permit with 2+ yr permit) |
| BMO NewStart Program | PR, work permit | Within 5 years of landing | 5% (PR), 10% (work permit) |
| CIBC Newcomer Program | PR, work permit, refugee | Within 5 years of landing | 5% (PR), 10% (work permit) |
| Scotiabank StartRight | PR, work permit, study permit | Within 5 years of landing | 5% (PR), 10–35% (work permit) |
| National Bank | PR, work permit | Within 3 years of landing | 5% (PR), 20% (work permit) |
| Desjardins (QC) | PR, work permit | Within 5 years of landing | 5% (PR), 10% (work permit) |
Feature comparison
| Feature | CMHC New to Canada | RBC | TD | BMO | CIBC | Scotiabank |
|---|---|---|---|---|---|---|
| Canadian credit score required | No (alternatives accepted) | No | No | No | No | No |
| International credit report accepted | Yes | Yes | Yes | Yes | Yes | Yes |
| Foreign income accepted | Limited | Yes (with conditions) | Yes (with conditions) | Yes | Yes | Yes |
| Work permit holders | Yes (10% down) | Yes | Yes (2+ yr permit) | Yes | Yes | Yes |
| Pre-arrival approval | No | Yes (select cases) | Limited | Limited | Limited | Limited |
| Max purchase price | Standard CMHC limits | No cap (standard LTV rules) | No cap | No cap | No cap | No cap |
| Rate | Standard insured rates | Competitive | Competitive | Competitive | Competitive | Competitive |
| Special perks | — | Welcome package, settlement support | Cash bonus in some cases | Settlement referral | Settlement resources | StartRight bundle |
Permanent resident vs work permit — key differences
| Factor | Permanent Resident (PR) | Work Permit Holder |
|---|---|---|
| Down payment | 5% minimum (same as all Canadians) | 10–35% depending on lender and permit duration |
| CMHC insurance | Available at 5%+ down | Available at 10%+ down (employer-specific permit may need 20%) |
| Lender options | All newcomer programs + standard programs | More limited — some lenders decline certain permit types |
| Qualifying income | Canadian employment income, foreign income (some lenders) | Must be employed in Canada; foreign income rarely counted |
| Permit duration concern | None — PR is permanent | Lender wants permit to extend beyond mortgage term (or reasonable expectation of renewal) |
| Path concerns | None | Lender may worry about deportation risk if permit expires |
Work permit types and lender treatment
| Permit Type | Lender Treatment | Typical Down Payment |
|---|---|---|
| Open work permit (PGWP, spousal, LMIA-exempt) | Most favorable — no employer restriction | 10–20% |
| Employer-specific work permit (LMIA-based) | Accepted but with conditions — need strong employer letter | 10–20% |
| IEC (International Experience Canada) | More difficult — short-term nature is a concern | 20–35% |
| Bridging open work permit (PR in process) | Treated favorably — PR is imminent | 10–20% |
| Study permit with off-campus work | Very limited mortgage options | 20–35% (if available at all) |
Credit history solutions
Building Canadian credit quickly
| Action | Timeline | Impact |
|---|---|---|
| Secured credit card | Get immediately upon landing | Start building Canadian credit history from day 1 |
| Newcomer credit card (RBC, BMO, etc.) | Available on arrival | Some banks offer unsecured cards to newcomers with PR |
| Phone plan in your name | Day 1 | Reported to credit bureaus; builds history |
| Utility bills in your name | Move-in | Some utilities report; at minimum creates payment history |
| Small personal loan | After 3–6 months | Diversifies credit types |
| 12 months of on-time payments | 12 months | Many lenders accept 12 months of Canadian payment history |
What lenders accept instead of a Canadian credit score
| Alternative | Documentation Required |
|---|---|
| International credit report | TransUnion or Equifax international report; or report from home country credit bureau |
| Reference letter from foreign bank | Bank letter confirming account history, loan repayment record, standing |
| 12 months of Canadian payments | Cancelled cheques or bank statements showing 12 months of rent, utility, phone payments on time |
| No credit check (equity-based) | Some B-lenders will approve with 20–35% down and minimal credit requirements |
Down payment — foreign-sourced funds
Documentation requirements
| Requirement | Why |
|---|---|
| 90-day foreign bank statements | Shows the source and accumulation of funds |
| Wire transfer confirmation | Proves the funds were sent from your account |
| Canadian bank statement | Shows the funds arrived and have been in your Canadian account |
| Currency exchange records | Shows the conversion rate and amounts |
| Gift letter (if applicable) | If family members are contributing, a signed letter confirming it is a gift (not a loan) |
| Proof of liquidation | If selling assets (property, investments) abroad — sale documents |
Anti-money laundering (AML) requirements
Canadian lenders must comply with FINTRAC regulations. For foreign-sourced down payments:
| Threshold | Requirement |
|---|---|
| All amounts | Identify source of funds; provide supporting documentation |
| $10,000+ wire transfer | Reported to FINTRAC automatically by receiving bank |
| $100,000+ | Enhanced due diligence; may require more extensive paper trail |
| Cash deposits | Not recommended — large cash deposits trigger AML flags |
Best practice: Wire funds from your foreign bank account directly to your Canadian bank account. Keep all records. Do not carry large amounts of cash across the border for this purpose.
Income qualification for newcomers
Canadian employment income
| Situation | How Lenders Treat It |
|---|---|
| Full-time permanent employee (T4) | Strongest — counted at 100% + bonus/OT with history |
| Full-time on probation | Most lenders accept with employer letter confirming permanent after probation |
| Contract employment | Accepted if contract extends beyond closing; history in the field helps |
| Part-time employment | Counted if consistent; some lenders require 2-year history |
| Self-employed in Canada | Need 2 years of Canadian NOAs — difficult as a newcomer |
Foreign income
| Type | Accepted? | Conditions |
|---|---|---|
| Ongoing foreign employment income | Rarely by A-lenders | Must demonstrate it will continue; some lenders accept for workers transferred internationally |
| Foreign rental income | Some lenders accept 50% | Need proof of ownership, lease agreements, and income history |
| Foreign pension | Yes (some lenders) | Need proof of ongoing payments |
| Foreign employment offer (pre-move) | Limited | Some lenders offer pre-arrival approval with signed Canadian employment offer |
Step-by-step: buying a home as a newcomer
| Step | Action | Timeline |
|---|---|---|
| 1 | Open a Canadian bank account — ideally before arriving | Before or immediately on arrival |
| 2 | Get a secured credit card and start building credit | Day 1 |
| 3 | Start Canadian employment — get pay stubs | ASAP |
| 4 | Wire down payment funds to Canadian account | 3–6 months before buying |
| 5 | Gather documentation — PR card/COPR, work permit, employment letter, foreign bank statements, 90-day history | Before applying |
| 6 | Contact a mortgage broker — one experienced with newcomer programs | 3–6 months before buying |
| 7 | Get pre-approved — broker submits to the most favorable newcomer program | 2–3 months before buying |
| 8 | Find a home and make an offer | When ready |
| 9 | Complete the mortgage application — provide all required documentation | Upon accepted offer |
| 10 | Close and move in | As scheduled |
Recommended timeline
| Milestone | Ideal Timing After Landing |
|---|---|
| Start building credit and employment | Month 1 |
| Begin saving / transferring down payment | Months 1–6 |
| Get mortgage pre-approval | Months 6–12 |
| Purchase home | Months 12–24 |
Buying within 6 months of landing is possible but challenging. Waiting 12–24 months gives you Canadian employment history, some credit history, and time to settle your down payment funds.
First-time buyer benefits for newcomers
As a newcomer, you may also qualify for Canadian first-time buyer programs:
| Program | Benefit | Eligibility |
|---|---|---|
| First Home Savings Account (FHSA) | Tax-deductible contributions up to $8,000/yr; tax-free withdrawals for home purchase | Canadian resident; never owned a home anywhere (or in last 4 years) |
| Home Buyers’ Plan (HBP) | Withdraw up to $60,000 from RRSP tax-free for a home purchase | First-time buyer; must repay over 15 years |
| First-Time Home Buyer Tax Credit | $10,000 non-refundable credit ($1,500 tax savings) | Purchased a qualifying home; first-time buyer |
| Land Transfer Tax Rebate (ON, BC, PEI) | Up to $4,000 (ON), $8,000 (BC, for new homes) | First-time buyer in the province |
| GST/HST New Housing Rebate | Rebate on tax paid for new construction | New-build home under $450,000 (federal); varies by province |
Note: “First-time buyer” in Canada means you have not owned a home in Canada in the last 4 years. Even if you owned property in your home country, you may still qualify as a first-time buyer in Canada.
Common mistakes newcomers make
| Mistake | Consequence | How to Avoid |
|---|---|---|
| Not building credit from day 1 | 12–24 months before mortgage-ready | Get a secured credit card the day you arrive |
| Carrying large cash | AML concerns; hard to document source | Wire transfer all funds bank-to-bank |
| Not disclosing foreign property | Lenders may discover it and decline your application | Disclose all foreign assets and liabilities upfront |
| Applying to only one bank | May miss better programs at other lenders | Use a mortgage broker who compares all newcomer programs |
| Waiting to start employment | Less income history means lower qualification | Start working as soon as legally permitted |
| Not getting an international credit report | Losing a valuable tool to compensate for no Canadian score | Request your credit report from your home country before or shortly after arriving |