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Newcomer Mortgage

New to Canada and want to purchase a home? Some government programs through CMHC (Canada Mortgage Housing Corporation) can help you start building your future with flexible qualification requirements, making it easier to qualify compared to traditional mortgages.

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What is a Newcomer Mortgage?

The Newcomer Mortgage helps individuals new to Canada secure home financing, even with limited or no Canadian credit history or employment records. It addresses newcomers’ unique challenges and has more flexible qualifying criteria than traditional mortgages.

To qualify for a Newcomer Mortgage, you must have lived in Canada for less than five years. This option is available for non-permanent residents, permanent residents, refugees, and temporary workers.

The qualification process is tailored to individual circumstances, with some applicants qualifying after just three months of work experience in Canada. For homes under $500,000, a minimum down payment of 5% may be accepted, but those without a Canadian credit history might need a down payment of 35% or more.

  • Flexiable Qualifications

    Newcomer Mortgages offer more lenient qualification terms, making it easier to secure financing despite limited credit history.

  • Support For Non Residents

    Non-permanent residents, including individuals holding work or study permits, are also eligible for Newcomer Mortgages. This alternative serves to close the gap for those who are actively contributing to Canada’s economy but have not yet established credit.

  • Competitive Rates

    Newcomer mortgages typically offer competitive interest rates and terms, enabling you to obtain advantageous financing. This implies that you can take advantage of rates that assist in maintaining manageable monthly payments, thereby making homeownership more affordable.

  • Easier Qualifications

    Newcomer Mortgages provides more flexible qualification criteria, facilitating the acquisition of financing even with a restricted credit history.

 FAQs

  • Individuals with permanent residency status can acquire a home with a down payment as low as 5%, although this choice is subject to limitations on home prices. Conversely, non-permanent residents typically must make a minimum down payment of 10%. Should your down payment be below 20%, mortgage default insurance will be necessary, potentially enabling you to secure a more favorable interest rate.

  • For a mortgage application as a newcomer, you will typically require proof of identity, a valid work permit (if relevant), documentation of your income (like pay stubs or employment letters), and verification of your down payment. Permanent residents are required to present their PR card or alternative proof of status. Additionally, it is beneficial to obtain a credit report from your home country, if it is accessible.

  • Generally, mortgages for newcomers are intended for primary homes instead of investment properties. If you're a newcomer looking to invest in real estate, you might have to fulfill extra criteria and offer a bigger down payment. It's advisable to speak with a mortgage advisor to grasp the particular requirements and choices that are available.

  • In Canada, securing a mortgage is generally reserved for individuals with permanent resident (PR) status. If you are a non-permanent resident, it is essential to possess a valid work permit to qualify for a mortgage.