Starting a new life in Canada is exciting—but it also comes with its share of challenges, especially when it comes to buying your first home. One of the biggest hurdles for newcomers is getting a mortgage without a long Canadian credit history.

Thankfully, there are programs and mortgage options tailored specifically to help newcomers become homeowners sooner. Whether you’re a permanent resident or a temporary worker, this guide will walk you through your options, eligibility, and how to set yourself up for mortgage success.

Who Qualifies as a Newcomer?

In Canada, a newcomer is typically defined as someone who has moved to Canada within the last five years. If you’ve received permanent resident status or have confirmation of permanent residence from Immigration, Refugees and Citizenship Canada (IRCC), you’ll likely qualify for most newcomer mortgage programs.

Some banks also extend mortgage options to temporary residents—such as foreign workers—if they meet specific criteria like having a valid work permit and income in Canada.

Documentation Required

Newcomers will need to provide documents that demonstrate income stability, creditworthiness, and legal status in Canada. Common requirements include:

Proof of employment and income
Canadian bank statements
Down payment source
International credit report (if available)
Proof of rent payments or utility bills
Valid immigration documents (PR card or work permit)

Document	Purpose
📄 Passport & Visa / PR Card	Confirms identity and immigration status
🧾 Proof of Employment	Recent pay stubs or job offer letter
💳 Credit Report (if available)	Even limited credit history helps
💰 Proof of Down Payment	Bank statements or GIC showing available funds
🧾 Bank Statements (last 3–6 months)	Verifies financial stability and savings
🏠 Purchase Agreement	If you’ve already chosen a property
📃 Reference Letter from Employer or Landlord (optional)	Helps build trust if credit history is thin

Steps to Secure a Newcomer Mortgage

1. Determine Your Budget

Figure out how much you can afford by calculating your income, monthly expenses, and estimated down payment.

2. Start Building Canadian Credit

Use a secured or unsecured credit card and always pay your bills on time. Even your cell phone plan can help build your credit if it’s a postpaid account.

3. Get Pre-Approved

A pre-approval tells you how much a lender is willing to give you. It also shows sellers that you’re a serious buyer.

4. Work with a Mortgage Broker or Lender

Choose a financial partner who understands newcomer mortgage programs and can help match you with the right one.

Credit for Temporary Residents

If you’re a temporary worker with a valid permit and a SIN starting with 9, you may also qualify for a mortgage. You’ll need at least 1 year left on your work permit and proof of income. Your credit access will be similar to that of permanent residents.

Understanding Canadian Credit History

Your credit score is a three-digit number between 300 and 900 that tells lenders how likely you are to repay your debts. Newcomers start building this score once they open credit accounts in Canada. Here’s what affects your score:

Payment history (most important)
Amounts owed vs. limits
Length of credit history
Types of credit used
New credit inquiries

Tip: Keep your credit utilization below 30% and avoid late payments.

Mortgage Programs for Newcomers

Several Canadian banks and insurers offer mortgage programs designed for newcomers. Here are some of the most popular ones:

Scotiabank StartRight

For permanent and temporary residents in Canada for less than 5 years
Must meet standard credit and mortgage criteria

TD New To Canada

For PRs and foreign workers
Requires at least 3 months of Canadian employment
Down payment of 20–35% depending on status

CIBC Newcomer to Canada

For PRs (5 years or less) or work permit holders
Requires proof of income and legal status

RBC Newcomer Advantage

Open to PRs, students, and foreign workers
Must provide immigration documents and income proof

BMO NewStart

For PRs and valid work permit holders
Must meet lending guidelines

Feature	RBC	Scotiabank	TD Canada Trust
Min. Down Payment	5% (with conditions)	5% (via StartRight Program)	5% (for insured mortgages)
Credit History Required	No Canadian credit history required	No Canadian credit history required	No Canadian credit history required
Work History	Job letter or 3-month income proof	Job letter or 3-month income proof	Job letter or 3-month income proof
Max Mortgage Amount	Up to $1,000,000 or more	Up to $1,000,000+	Based on income and debt ratio
GIC as Credit Substitute	Accepted	Yes (Scotia GIC)	Case-by-case basis
Special Perks	Free banking for 12 months	Cashback + free credit card	Newcomer banking bundle
Availability	Nationwide	Nationwide	Nationwide

Mortgage Default Insurance for Newcomers

If you’re putting down less than 20%, you’ll need mortgage default insurance. These three providers have special programs for newcomers:

CMHC Newcomers

Open to PRs and non-PRs
No minimum residency requirement

Sagen New to Canada

Must have valid work permit or PR status
Must show full-time Canadian work history (3+ months)

Canada Guaranty Maple Leaf Advantage

For newcomers who arrived in the last 5 years
Employment requirement can be waived for corporate relocations

Frequently Asked Questions

Can I qualify for a mortgage without Canadian credit?
Yes, many banks will accept international credit reports and utility or rent payment history in place of a Canadian credit score.

Do I need to be a PR to get a mortgage?
Not always. Some lenders offer mortgages to temporary workers with valid work permits and stable income.

Can I access first-time homebuyer incentives?
If you meet the program’s eligibility—like PR or non-PR status and income caps—you may qualify.

Final Thoughts

Canada’s housing market might feel overwhelming, especially when you’re new to the country—but it’s not out of reach. Lenders understand the challenges you face, and many offer programs tailored to help newcomers buy their first home.

If you’re ready to explore your options, connect with our mortgage professionals today. We’ll help you navigate the process and find the right mortgage path based on your status and goals.

🏠 Discover the Best Mortgage Options for Newcomers to Canada

Are you new to Canada and looking to buy a home? Explore mortgage options designed specifically for newcomers. Find out how to get pre-approved and what you need to qualify. Talk to a Mortgage Expert Today

Mortgage Options for Newcomers to Canada

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Who Qualifies as a Newcomer?

Documentation Required