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New to Canada Mortgages

If you are new to Canada and need a mortgage to finance a home purchase, there are several steps you must take and supporting documentation you may need to provide. The type of mortgage you will qualify for, and what documentation you’ll need to provide, depends on whether or not you are a permanent resident, what your credit rating is and how much you have saved for a down payment.

The chart below outlines which type of mortgage you will qualify for, depending on your unique situation.

Type of NewcomerTypical MortgageNew to Canada Program1Not Eligible for a Mortgage
  • Permanent Resident: Yes
  • Credit Rating: Good2
  • Down Payment: 5% or more
x
  • Permanent Resident: Yes
  • Credit Rating: Weak/Alternative3
  • Down Payment: 5% or more
x
  • Permanent Resident: No. Require work permit + application for PR must be submitted
  • Credit Rating: Good
  • Down Payment: 5% or more
x
  • Permanent Resident: No
  • Credit Rating: Good/Weak/Alternative
  • Down Payment: 10% or more
x
  • Permanent Resident: No
  • Credit Rating: Good/Weak/No Alternative
  • Down Payment: Less than 10%
x

If you are a permanent resident and have a strong credit rating, you may be able to qualify for a typical mortgage. If, however, you don’t meet all of the qualification criteria for a typical mortgage, you may still be able to obtain a mortgage through one of the New to Canada Programs offered by the Canada Mortgage and Housing Corporation (CMHC), Genworth Financial and Canada Guaranty.

 

New to Canada Program mortgages

Canada’s three mortgage default insurance providers each have their own New to Canada Program, aimed at helping newcomers obtain a mortgage in order to purchase a home. The requirements for all three programs are similar, so we made a list to help make sure you have everything you need in order to submit your application:

Build Your Credit


Alternative Credit Supporting Documentation


Save for Down Payment


Calculate Your Mortgage Default Insurance Premium


Choose a Mortgage Provider


Choose Your Mortgage Amortization Period


Select Mortgage Term


Choose Between a Fixed vs. Variable Rate


References and Notes

  1. Any of the New to Canada programs offered by CMHC, Genworth Financial or Canada Guaranty Mortgage Insurance.
  2. Either a Canadian credit report or a recognized International credit report.
  3. To learn more about alternative credit reporting, see below.
  4. If you are putting down more than 20% of the value of your home as a down payment, but have a weak credit history, you may still need to purchase mortgage default insurance.

 

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