Mortgages for Newcomers and Immigrants in Canada: Programs, Permits and Proof of Income

Newcomers can get a Canadian mortgage without years of Canadian credit or employment history. Most big banks run newcomer mortgage programs, and the mortgage insurers accept international credit evidence. What changes is what you have to prove: your immigration status, Canadian income, creditworthiness from another country, and where your down payment came from. This page covers each of those, for permanent residents and for work permit holders. It’s part of our mortgage lenders and brokers guide.

Buyers who don’t live in Canada, or who have no Canadian status, are covered in our guide to non-resident mortgages.

Mortgages for new immigrants to Canada by immigration status

CMHC’s newcomer insurance is for permanent residents and for non-permanent residents legally authorized to work in Canada, with no minimum period of residency. Permanent residents can use all of CMHC’s homeowner products, with the same minimum down payment as anyone else. A non-permanent resident’s purchase also has to be allowed under the federal foreign buyer ban, which runs until January 1, 2027 with exceptions for some temporary residents, including some work permit holders; the foreign buyer ban guide lists who is exempt.

Permanent resident vs work permit: key differences

Work permit types and lender treatment

New to Canada mortgage programs: what you need to prove income and credit

Most big banks run a newcomer program with its own eligibility window. Details change, so confirm the current terms on each bank’s page:

Other banks and many credit unions have their own newcomer offers. A mortgage broker who handles newcomer files can compare them; the best mortgage lenders in Canada page compares the lenders themselves.

Proving your income

A clear employment letter confirming your position, salary, start date and status carries a lot of weight when your Canadian pay history is short.

Proving your credit

For a CMHC-insured purchase, at least one borrower or guarantor needs a credit score of 600 or more; CMHC may use other ways to judge creditworthiness for a borrower with no credit history. Without a Canadian credit report, an international credit report or a reference letter from a bank in the borrower's home country may be considered.

Opening a Canadian bank account and a credit card soon after you arrive starts your Canadian credit file; see how credit scores work in Canada and the best bank accounts for newcomers.

Documents

The mortgage document checklist covers the documents every buyer needs.

Down payment: foreign-sourced funds

Most lenders want to see your down payment’s history for about 90 days, so moving money early and keeping every record makes approval simpler.

Canadian lenders must follow anti-money-laundering rules, so every lender and lawyer will ask where the money came from. Banks report international transfers of $10,000 or more to FINTRAC. Wiring funds bank to bank leaves a clear trail; large cash deposits are hard to document and draw extra scrutiny.

Affordability and the stress test

Newcomers qualify on the same ratios as everyone else. For an insured mortgage, CMHC caps your housing costs at 39% of gross income (GDS) and your housing costs plus other debt payments at 44% (TDS); lenders set their own limits for uninsured mortgages. Both are calculated at the stress-test rate. You qualify at the greater of your contract rate plus 2% or 5.25%. The GDS and TDS guide and the stress test guide explain both, and the affordability calculator estimates your price range.

First-time buyer programs for newcomers

Many newcomers qualify for Canada’s first-time buyer programs, but several of them count a home you owned outside Canada:

• First Home Savings Account (FHSA): contributions of up to $8,000 a year are deductible, and a qualifying withdrawal is tax-free. Opening one requires passing a first-time buyer test. You didn't live, this calendar year or in the previous 4 calendar years, in a home you owned or jointly owned as your principal residence. The CRA’s test includes a home that would be a qualifying home if it were in Canada, so a home you owned and lived in abroad counts against you.
• Home Buyers’ Plan: withdraw up to $60,000 from your RRSPs without tax, repaid over 15 years.
• Home buyers’ amount: a $10,000 non-refundable credit claim, worth $1,400 for 2026 at the 14% lowest federal rate.
• Ontario land transfer tax refund: up to $4,000. Two of its conditions matter most for newcomers. You can never have owned a home, or an interest in one, anywhere in the world. You must be a Canadian citizen or permanent resident, or become one within 18 months of the transfer to claim the refund then.
• B.C. first-time buyers’ exemption: no property transfer tax on the first $500,000 of a home worth up to $835,000. It covers existing homes, not just new ones (B.C. also has a separate newly built home exemption). Two of its conditions matter most for newcomers. You are a Canadian citizen or permanent resident when the property is registered. You have never owned a registered interest in a property that was your principal residence, anywhere in the world.

Every federal and provincial program is listed on the first-time home buyer programs page.

Provincial costs to plan for

Most provinces charge a land transfer tax when you buy (Quebec’s is called the welcome tax), and the land transfer tax calculator works it out by province. Buyers who aren’t citizens or permanent residents can also owe Ontario’s Non-Resident Speculation Tax (25%) or B.C.’s additional property transfer tax (20% in specified regions); each has its own exemptions, set out by the province. The closing cost calculator adds up the rest.

Step by step

If a spouse or partner joins you later and you want them on the mortgage or title, adding someone to your mortgage explains how lenders handle it.

Common mistakes newcomers make

Related articles

• First-time home buyer guide
• CMHC mortgage insurance explained
• Down payment calculator