Newcomers

New to Canada Mortgages: Newcomer Programs and Requirements in Ontario

New to Canada mortgage programs let permanent residents, work permit holders and new citizens qualify with international credit, alternative payment history and Canadian employment — sometimes with as little as 5% down.

Who Qualifies for Newcomer Mortgage Programs

Each lender and insurer sets its own newcomer criteria — these are the typical patterns.

Permanent residentsNewcomer programs often cover those who landed within about the last five years. The standard minimum down payment may apply, starting at 5%.
Work permit holdersPrograms exist for open and closed work permits, usually with meaningful time left on the permit. Lenders commonly ask for around 10% down.
New citizens and returning CanadiansUsually treated like other Canadians, but a thin or foreign credit file may need the same alternative references newcomers use.
Non-residentsA separate category with stricter rules, a much larger down payment and federal and provincial purchase rules that may apply.

Qualifying Without Canadian Credit History

A thin Canadian credit file doesn't have to stop you.

International credit reportEquifax or TransUnion can sometimes obtain one from your previous country.
Reference lettersFrom foreign banks or landlords confirming your payment history.
Canadian payment historyAbout 12 months of on-time rent, utility or phone payments.

Income and Employment

A Canadian job is usually the strongest part of a newcomer file.

Lenders typically want a job letter confirming your position, salary and start date, plus recent pay stubs. Some require you to be past any probation period; others lend sooner for certain professions.

Income earned abroad

Income earned abroad is handled inconsistently. Where it can be used, expect requests for translated tax documents, employment confirmation and proof of funds moved to Canada.

For professionals arriving with credentials, see new professional mortgage programs, and if you earn across borders, read whether cross-border income can qualify.

Down Payment Rules for Newcomers

The legal minimums apply, and newcomer programs may ask for more depending on your status.

of the first $500,000

10%

of the portion above, up to $1,500,000

20%

at $1,500,000 or more

Lenders usually want to see the down payment in your account for about 90 days.
Funds sent from abroad need records showing the source and every transfer into Canada.
Gifts from immediate family generally need a signed gift letter and proof the money has arrived.
Budget separately for closing costs: land transfer tax, legal fees, inspection and adjustments.

With less than 20% down, your mortgage must be insured, and the premium is usually added to the mortgage.

Federal and Ontario Rules for Non-Canadians

Two sets of rules can affect buyers who aren't Canadian citizens or permanent residents.

Federal purchase restrictionsNon-Canadians are currently restricted from buying residential property, with exceptions that include some temporary residents. Permanent residents and citizens aren't affected.
Ontario Non-Resident Speculation TaxCan apply to foreign nationals buying residential property anywhere in the province, with some exemptions and rebates.

First-Time Buyer Help Newcomers Can Use

If you've never owned a home — in Canada or abroad within the relevant period — these may apply once you meet their rules.

First Home Savings AccountFor Canadian residents 18+ who haven't lived in a home they or their spouse owned this year or the previous four calendar years.
RRSP Home Buyers' PlanWithdraw RRSP savings toward a qualifying home, if you have an RRSP.
Land transfer tax refundGenerally requires you to be a citizen or permanent resident, or to become one within 18 months of buying.
30-year insured amortizationFor first-time buyers. See first-time home buyers in Ontario for the full list.

How the Process Works

International history review
We review your foreign credit references, bank and landlord letters and employment history so a lender sees your full picture.
Alternative credit file
Where your Canadian credit is limited, we assemble the international report and Canadian payment history a program accepts.
Employment and down payment documents
Job letter, pay stubs, bank statements and proof of down payment, with your PR card, citizenship or work permit.
Pre-approval to keys
The purchase then follows a normal timeline — often 60 to 90 days from accepted offer to closing.

For a month-by-month view, read the newcomer mortgage timeline in Ontario.

Documents to Have Ready

PR card, citizenship document or work permit, and passport
Canadian job letter and recent pay stubs
Three months of bank statements
Records showing how your down payment was built and transferred to Canada
International credit report or reference letters, if you have them

Buying in London and Southwestern Ontario

Help is available in English, Hindi and Gujarati.

Frequently Asked Questions

Can I get a mortgage without Canadian credit history?

Often, yes. Newcomer programs can accept an international credit report, reference letters from foreign banks or landlords, or about 12 months of on-time rent, utility and phone payments in place of a Canadian credit score. Expect more documentation, and in some cases a larger down payment.

How much down payment do newcomers need?

It depends on your status and the program. Permanent residents can often use the standard minimum — 5% of the first $500,000 and 10% of the portion above that, up to $1,500,000. Work permit holders are commonly asked for more, often around 10%. Non-residents generally need a much larger down payment.

Can I buy a home in Ontario on a work permit?

Possibly. Federal rules restrict purchases of residential property by people who aren't Canadian citizens or permanent residents, but there are exceptions, including for some temporary residents who meet conditions. Ontario's Non-Resident Speculation Tax may also apply. Confirm your position with a real estate lawyer before you make an offer.

Can my down payment come from overseas?

Generally yes, with a clear paper trail showing the source of the funds and the transfer into a Canadian account. Lenders commonly want to see the money in your account for about 90 days, or a gift letter if it comes from immediate family.

Can newcomers use the FHSA or the first-time buyer land transfer tax refund?

Often, yes, if you meet each program's rules. The FHSA is open to Canadian residents who are 18 or older and haven't lived in a home they or their spouse owned in the current year or the previous four calendar years. Ontario's land transfer tax refund for first-time buyers generally requires you to be a Canadian citizen or permanent resident, or to become one within 18 months of buying.

How long does it take to buy a home as a newcomer?

Once your documents are organized and you have a pre-approval, the purchase itself usually follows a normal 60 to 90 day timeline. The part that takes longest is often gathering foreign documents and showing the history of your down payment, so start early.

Approval, rates and product availability are set by lenders and insurers and depend on individual qualification. Nothing on this page is a guarantee of approval or a specific rate, or legal, immigration or tax advice.