London & Southwestern Ontario
Newcomer Mortgage Options in London, Ontario
London attracts a steady flow of newcomers from larger Canadian cities and from abroad, drawn by housing costs, the universities and the hospital network.
Buying here as a newcomer is very achievable. Qualification depends on your status, income documentation and down payment — and on choosing a lender whose newcomer program matches your situation.
Nandan Bajani · Mortgage Agent Level 1 | Ontario · The Mortgage Firm Inc.
What lenders look at
Lenders assess residency status, how long you've been in Canada, employment and income documentation, down payment source, and whether you have Canadian credit history.
Requirements differ meaningfully between programs, and this is one area where going to a single bank often produces a no that another lender would have approved.
- Permanent residents and work permit holders are treated differently by different lenders
- Some programs accept limited or no Canadian credit history with alternative references
- Down payment funds usually need a 90-day history; funds from abroad need clear transfer records
- A Canadian job letter and pay stubs strengthen the file considerably
Building Canadian credit early
If you're planning to buy within a year or two, opening a Canadian credit card and paying it in full monthly, plus keeping utility and phone accounts in your name, builds the credit file lenders want to see.
Two active trade lines with 12 months of history changes the range of lenders available to you.
Documentation for income earned abroad
Documentation for income earned abroad
Foreign income is handled inconsistently across lenders and often can't be used directly for a Canadian purchase.
Where it can, expect requests for translated tax documents, employment confirmation and evidence of funds transferred to Canada. It's better to confirm the approach before writing an offer than after.
Important limitations
Important limitations
There are federal and provincial rules affecting purchases by non-residents and non-Canadians, and they change.
Nothing on this page is immigration or tax advice. What qualifies depends on your specific status, the lender's program at the time, and the property — I'll confirm the current position on your file rather than generalize.
Who newcomer programs are designed for
Who newcomer programs are designed for
Some programs allow as little as 5% down for permanent residents, subject to lender and insurer rules and your file.
Typical profiles include:
- Permanent residents who landed within roughly the last five years
- Work permit holders, usually with a meaningful amount of time left on the permit
- New citizens with a limited Canadian credit file
- Returning Canadians whose recent credit history is from abroad
What to have ready
What to have ready
Guidance is available in English, Hindi and Gujarati.
- PR card, citizenship document or work permit
- Job letter, recent pay stubs and three months of bank statements
- Any international credit report or reference letters from foreign banks or landlords
- Records showing how your down payment was transferred to Canada
Related reading
Questions people ask
Can I get a mortgage without Canadian credit history?
Some newcomer programs allow it with alternative credit references such as rent and utility payment history, usually with additional down payment or documentation requirements.
Do I need permanent residency to buy in London?
Not necessarily. Some lenders lend to work permit holders, though terms and down payment requirements differ. Rules for non-residents are separate and change.
How much down payment do newcomers need?
It varies by program — some accept the standard minimums, others require more, particularly where income or credit is documented abroad.
Can my down payment come from overseas?
Generally yes, with clear documentation of the source and the transfer into a Canadian account.
Can I buy a home in London on a work permit?
Often yes. Many lenders and insurers have programs for work permit holders, and federal rules on non-Canadians buying homes include exemptions for some temporary residents. Those rules depend on your exact status, so confirm with a real estate lawyer before you make an offer.
How long do I need to have worked in Canada to get a mortgage?
It varies by lender. Some want you past probation in a full-time role, others accept a shorter history, especially in the same line of work you had before arriving. A job letter showing your position, salary and start date is the key document.
Do newcomers pay mortgage default insurance?
Yes, on the same terms as anyone else: with less than 20% down, the mortgage must be insured and the premium is usually added to the mortgage. Some newcomer programs may ask for more than the legal minimum down payment.
Talk through your newcomer mortgage options
A short conversation is usually enough to know what's realistic. No obligation, no pressure.