New to Canada

New to Canada? Take the first step to owning a home

Dream of owning a home in Canada? If you’re a Canadian citizen, applying for a mortgage is a fairly simple process. However, individuals who have recently moved to the country and aren’t yet citizens can still get a mortgage. The process is just more complex and the documentation needed is more extensive.

All three mortgage default insurance companies (CMHC, Sagen and Canada Guaranty) provide their own New to Canada Program, making insured-mortgage financing available to borrowers with permanent and non-permanent residence status (subject to federal eligibility requirements).

There are a few factors that ultimately determine what kind of mortgage you’ll qualify for as a newcomer to Canada.

Newcomer to Canada

Factors that determine what kind of mortgage you'll qualify for as a newcomer to Canada

residency status

Whether you’re a permanent resident or a temporary resident of Canada

Downpayment

You can qualify with as a little as 5% down payment, 10% in some cases

Credit score

Your credit score is a determining factor if you are new to Canada

Overhaul your Financial Situation

possible scenarios for a newcomer

There are five different scenarios a newcomer can fall into when it comes to a mortgage application. Let’s take a look at them

You’re a permanent resident, have a good credit score and have a down payment of 5% or more. This is the best-case scenario, because with these attributes you qualify for a regular mortgage, the same as any Canadian citizen.
You’re a permanent resident, you have the 5% or more down payment, but your credit score is weak. While not ideal, you still may qualify for the New to Canada Program offered by the three mortgage default insurance providers.
You’re not a permanent resident, but you’ve submitted your application and also have a valid work permit. In addition, you have a good credit score and a down payment of 5% or more. Once again, you qualify for a regular mortgage.
You’re not a permanent resident, but you have a 10% or more down payment (your credit score can be good/fair or weak). You qualify for the New to Canada Program.
You’re not a permanent resident and don’t have a down payment of at least 10%. This is the one scenario in which you won’t qualify for a mortgage.

Program Requirements

What you need to qualify for the new to canada program

Some people who have recently moved to this country may not qualify for a regular mortgage, but may still be eligible under the New to Canada Program offered by the three mortgage insurers. In order to qualify for the New to Canada Program, you have to demonstrate that you have good credit. This can be achieved in a number of ways: