Mortgages for newcomers to Canada
New to Canada and ready to buy? A limited Canadian credit history doesn’t have to stop you. A mortgage professional who works with newcomers knows which lenders offer programs for you and what documents they’ll ask for.
Key points
- Several lenders have mortgage programs for people who’ve recently moved to Canada.
- A short Canadian credit history doesn’t always stop you. Lenders can look at other proof.
- Federal rules currently restrict some non-Canadians from buying homes, with exceptions.
- Start building Canadian credit as soon as you arrive.
Mortgages for newcomers
Newcomer programs are built for people who’ve arrived in Canada in the last few years and haven’t had time to build a credit history here. Many are open to permanent residents, and some to people on work permits. Lenders look at your employment, your savings and other evidence of how you manage money.
Who can buy a home in Canada?
Federal rules currently prohibit most non-Canadians from buying residential property, and they’re set to run into 2027. Citizens and permanent residents aren’t affected. Some temporary residents may qualify for an exception if they meet specific conditions.
| Your status | Can you buy? | Notes |
|---|---|---|
| Canadian citizen | Yes | No restrictions |
| Permanent resident | Yes | Newcomer programs often apply |
| Work permit holder | Possibly | Exceptions exist with conditions, so confirm before you shop |
| Non-resident | Generally no | Limited exceptions apply |
This is a summary, not legal advice. Confirm how the rules apply to you with a lawyer before you make an offer.
How NorthMerit can help
Tell us what you’re planning and we’ll connect you with one licensed mortgage professional who compares lenders for you. It’s free, and there’s no obligation.
Building your Canadian credit
Your credit history from another country usually doesn’t transfer. Open a Canadian bank account and a credit card soon after you arrive, use it for regular spending, and pay the full balance every month. Keep your balance well below the limit. Within six months to a year, you’ll have a record lenders can work with.
Keep proof of rent and utility payments too. Some lenders will consider them when your credit history is short.
Your down payment
You can usually use savings from abroad, but lenders need to see where the money came from.
| Source | What lenders usually ask for |
|---|---|
| Savings from abroad | Statements showing the funds, and proof of the transfer |
| A gift from family | A signed gift letter and proof of the funds |
| Canadian savings | Recent statements, often covering 90 days |
Many lenders want the money in a Canadian account for some time before closing, often 30 to 90 days.
A realistic timeline
Here’s how a newcomer might go from arriving to owning.
| When | What happens |
|---|---|
| First month | Open a bank account and a credit card |
| Months 1 to 6 | Build a record of on-time payments |
| Before you shop | Get pre-approved and confirm you’re eligible to buy |
| Before your offer | Move your down payment into a Canadian account |
Common questions
Can I get a mortgage without Canadian credit history?
Are there rules about who can buy a home?
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