Mortgages for Newcomers to Canada: How to Qualify
You can get a mortgage soon after you move to Canada, often with as little as 5% down. CMHC's newcomer program covers permanent residents and people who are legally allowed to work here, such as work permit holders, and it has no minimum time in the country. At least 1 borrower needs a 600 credit score or another way to show they pay their bills, and the home has to cost less than $1.5 million. If you're on a work permit, you also have to fit the federal rule on non-Canadians buying homes, which has its own conditions.
Can newcomers get a mortgage in Canada?
Yes. CMHC's newcomer program is open to permanent residents and to non-permanent residents who are legally authorized to work in Canada, and CMHC says there's no minimum period of residency. Permanent residents can use all of CMHC's homeowner insurance products. Work permit holders can use it to buy a home they'll live in.
CMHC isn't the only option. Sagen, another mortgage insurer, runs a New to Canada program, and in February 2026 it dropped the rule that you had to have moved here within the last 60 months. Each lender adds its own rules on top of the insurer's, so 2 lenders can give the same newcomer very different answers. We check which lenders fit your status, job and down payment before anything is sent.
How much do you need for a down payment?
As little as 5%, on a home under $1.5 million. Under CMHC's rules the minimum is 5% of the first $500,000 and 10% of the part above that, for a home with 1 or 2 units. On a $700,000 home, that's $25,000 plus $20,000, so $45,000 down.
- The home can have 1 to 4 units, and you have to live in 1 of them.
- Your down payment can come from savings, the sale of a property, or a gift from a relative that you don't have to pay back.
- The longest amortization on these insured mortgages is 25 years.
Expect your lender to ask for bank statements that show where the money came from, including money you moved from another country. Moving it into a Canadian account early, and keeping the paper trail, makes that part much easier.
What if you don't have a Canadian credit history yet?
You can still qualify. CMHC needs at least 1 borrower or guarantor with a credit score of 600, and when your Canadian history is thin, it may accept other proof, such as an international credit report or a reference letter from your bank in your home country.
The best thing you can do in your first months here is open a Canadian credit card, use it a little and pay it off in full every month. Even a short Canadian history makes the file easier to approve.
Can you buy a home in Canada on a work permit?
Yes, if you meet the work permit exception to the federal ban on non-Canadians buying homes. Under the regulations, you need 183 days or more left on your work permit on the day you buy, and you can't have bought more than 1 residential property in Canada. The ban covers homes with 3 units or fewer inside census metropolitan areas and census agglomerations, which takes in most cities.
Permanent residents and citizens aren't affected, because the Act only applies to people who aren't citizens, permanent residents or registered under the Indian Act. The ban was extended in 2024 to January 1, 2027. If you plan to buy around that date, check the current rule with your lawyer before you write an offer.
Do newcomers pay extra tax to buy in BC?
Foreign nationals do, in parts of the province. BC charges an additional property transfer tax of 20% of the home's value when a foreign national buys in specified areas, including Metro Vancouver. Permanent residents don't pay it.
If you pay it and then become a permanent resident or citizen within 1 year of the transfer being registered, you may be able to get it refunded. You also have to move in within 92 days and live there as your main home for at least 1 year. The province warns there's no guarantee your status will come through within 12 months, so plan your budget as if you'll pay it.
How do lenders qualify newcomers?
The same way they qualify everyone else, with the newcomer rules on top. Under CMHC's rules, your housing costs can't go over 39% of your income and your total debt payments can't go over 44%, worked out at the higher of your rate plus 2% or 5.25%.
Bring a job letter, recent pay stubs, your permanent resident card or work permit, and statements for your down payment. Some lenders want you past your probation period at work, and some don't, which is 1 more reason to compare lenders before you start house hunting.
Frequently asked questions
How long do I need to live in Canada to get a mortgage?
- Under CMHC's newcomer program there's no minimum time in Canada. You need permanent resident status or legal authorization to work here. Individual lenders may still want to see a job in Canada and some pay history, so the timing depends on the lender we match you with.
Can I use money from my home country for my down payment?
- Yes. CMHC allows a down payment from savings, the sale of a property or a non-repayable gift from a relative. Your lender will want statements that show where the money came from and how it got to Canada, so move it early and keep every record.
Can I get a mortgage without a Canadian credit score?
- Often, yes. CMHC may accept other proof that you pay your bills, such as an international credit report or a reference letter from your bank back home. At least 1 borrower or guarantor still needs a 600 score if they have Canadian credit.
Does the foreign buyer ban apply to permanent residents?
- No. The federal ban only applies to people who aren't Canadian citizens, permanent residents or registered under the Indian Act. Work permit holders can buy if they have 183 days or more left on their permit and haven't bought more than 1 residential property in Canada.
What's the most I can spend with less than 20% down?
- The home has to cost less than $1.5 million for an insured mortgage with less than 20% down. Your income and debts decide how much a lender will approve, and our affordability calculator gives you a quick estimate before you talk to us.