Moving to Canada is an exciting milestone, but settling into a new country comes with many challenges, including finding a place to call your own. For newcomers, the dream of homeownership can feel out of reach, especially if you lack Canadian credit history or permanent residency. Fortunately, Canada offers several programs and policies specifically designed to help immigrants and newcomers to Canada buy a home sooner than they may think.
What Is The “New to Canada” Mortgage Program?
Most major Canadian lenders, including CMHC (Canada Mortgage and Housing Corporation), Sagen, and Canada Guaranty, offer specialized mortgage programs for newcomers. These initiatives are tailored for recent immigrants who may not meet traditional lending criteria, such as established Canadian credit or long-term employment history. With the right documentation, you could qualify for a mortgage with as little as 5% down on an owner-occupied property.
Who Qualifies for “New to Canada”?
To qualify, individuals must:
- Have immigrated or relocated to Canada within the last 5 years
- Have permanent resident status or hold a valid work permit
- Plan to live in the property as their primary residence
Lenders will also ask for proof of income, some savings, and a clean rental or credit payment history, even if these come from outside Canada
Key Features of the New to Canada Mortgage Program
|
Low Down Payment |
For homes under $500,000, you may qualify with just 5% down. For more expensive properties, the minimum down payment increases progressively. |
|
Alternative Credit Sources Accepted |
If you don’t have a Canadian credit score, lenders often accept alternative documentation, such as:
|
|
Flexible Income Guidelines |
Some lenders will consider consistent, verifiable foreign income from overseas. Recent employment in Canada can also be counted. |
| Access to Mortgage Insurance |
All three default insurers in Canada (CMHC, Sagen, and Canada Guaranty) back “New to Canada” programs. This insurance protects the lender but helps the borrower access lower down payment options and competitive rates. |
Why Should Newcomers to Canada Work With a Mortgage Broker?
Navigating the Canadian mortgage process can be complex, especially for newcomers. A mortgage broker who understands “New to Canada” programs can:
- Help you gather the right documents
- Advise on building or establishing credit in Canada
- Connect you with lenders most likely to approve your application
Final Thoughts
Becoming a homeowner in Canada as a newcomer is absolutely possible. With tailored mortgage programs, flexible qualification criteria, and the support of experienced mortgage professionals, many new Canadians are becoming homeowners sooner than they imagined. If you’re ready to start your journey, reach out to a licensed mortgage professional who specializes in helping newcomers make Canada home – one step at a time.
