Newcomer Mortgage for Those New to Canada

If you are new to Canada and want to become a homeowner here, The Mortgage Advisors offer a variety of solutions that allow you to purchase property, whether you have landed status or are here on a work visa. With friendly advice and ongoing support from our caring mortgage professionals, you’ll feel confident as we help you secure the best rates and newcomer mortgage terms to turn your dream of owning a home in Canada into a reality.

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Understanding Newcomer Mortgages in Canada

​We understand that as a newcomer, you might feel unsure or even a little worried about getting approved for a traditional mortgage. Many Canadian newcomers face challenges because they have limited credit history or local employment records, but that doesn’t mean homeownership is out of reach.

A newcomer mortgage is specially designed to help people like you secure financing through flexible programs and a better understanding of qualification criteria. Whether you’re a recent arrival or have been settling in for a while, we’re here to help you navigate your options with ease.

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Eligibility Criteria for Newcomer Mortgage Programs

To qualify for a newcomer mortgage in Canada, you’ll typically need to meet these main criteria:

  • Residency status: Most programs are available to landed immigrants or permanent residents, though some are open to refugees and non-permanent residents.
  • Employment: Lenders usually want to see at least three months of full-time work in Canada.
  • Down payment: You’ll need a down payment of 5% or more, depending on the property price, and it must come from your own savings.
  • Credit history: If you don’t have Canadian credit history yet, lenders may look at international credit reports or alternative proof like rental payment history or utility bills.

Special programs, such as Sagen’s New to Canada Mortgage Program and CMHC’s Newcomers Program, offer lower down payments and more flexible credit requirements. We can help you figure out which one is the best fit for you.

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Required Documentation for Newcomer Mortgages

When applying for a Canadian newcomer mortgage, you will be asked to provide a series of supporting documents. These include:

  • Proof of permanent residency or a valid work permit
  • Employment verification (like a letter or pay stubs)
  • Proof of income (such as bank statements or tax papers)
  • Personal ID (like your passport or driver’s license)

If you don’t have much credit history here yet, don’t worry — we can help you gather other types of documents, like:

  • International credit reports
  • Rental payment records
  • Utility or phone bills
  • Bank reference letters from your home country
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Why Work with The Mortgage Advisors?

Let’s face it — navigating mortgage products and applications can be tricky, even for people who’ve lived in Canada all their lives! That’s why working with knowledgeable mortgage brokers like The Mortgage Advisors can make such a big difference.

We take the time to get to know you and your unique situation, offering personalized advice that helps you reach your homeownership goals. Our friendly, approachable team is always here to answer your questions, explain your options, and give you peace of mind. With over a decade of experience and a strong network of lenders, we’ll work hard to get you the best rates and terms, whether you’re a permanent resident, a work permit holder, or just setting foot in Canada.

Local Expertise in Ottawa and Surrounding Areas

Navigating the housing market—while still getting used to a new city and a new country— can be challenging. Luckily, our Ottawa mortgage advisors have a deep understanding of the local real estate trends, price fluctuations, and up-and-coming neighbourhoods within the area. Aside from helping you obtain a newcomer mortgage, we will be happy to share insights into amenities, schools, commute times, and community vibes to help you stay confident that you are making the right choice for your future.

Steps to Secure a Newcomer Mortgage with The Mortgage Advisorsheader decoration

When you partner with The Mortgage Advisors to secure your very first mortgage as a Canadian newcomer, you can count on us to guide you through every step, making sure you get the financing you need as smoothly and quickly as possible. Here’s how we make the process easier and less stressful for you:

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  1. Educate yourself. We’ll help you review the available New to Canada mortgage programs and explain how they work in simple, clear terms. This knowledge gives you a solid foundation to confidently plan your future home purchase and make smart, informed decisions along the way.
  2. Getting ready. Before you start house hunting, you’ll need to save at least 5–10% of your target home price for the down payment. We’ll encourage you to begin setting aside money and help you understand how to build your Canadian credit history as soon as you arrive—so you’re well-prepared when it’s time to buy.
  3. First consultation. During your first meeting with one of our friendly mortgage professionals, we’ll take the time to understand your goals, answer your questions, and carefully evaluate your eligibility. You’ll walk away with a clear idea of your options and next steps.
  4. Gathering documents. No need to guess or feel overwhelmed—your dedicated mortgage agent will provide a straightforward checklist of everything you’ll need to complete your mortgage application, from ID and income verification to any alternative credit details. We’re here to make sure you feel supported, not stressed.
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  1. Mortgage pre-approval. We’ll work quickly to secure a mortgage pre-approval for you, so you’ll know exactly how much you qualify for and what price range you should focus on when shopping for your future home. This is where your dream starts to feel very real!
  2. Finding a home. With your pre-approval in hand, you’ll team up with a realtor to find a property that fits your family’s needs and stays comfortably within your approved budget. Throughout this phase, we stay available to answer any financing questions that come up.
  3. Submit a mortgage application. Once your purchase offer is accepted, your mortgage agent will compare lenders to find the best financing product for your situation. We’ll handle the full application process on your behalf, saving you time, energy, and guesswork.
  4. Closing. Once we have a mortgage commitment from a lender, we work with you to fulfill the conditions of financing. After reviewing the documents, we’ll send them your way for e-signing. The last step is for the lender to instruct the lawyer who facilitates the disbursement of funds and registration of your new mortgage.

Frequently Asked Questions About Newcomer Mortgages​header decoration

Absolutely. While having a Canadian credit history can strengthen your mortgage application, many lenders offer newcomer mortgages in Canada and accept alternative forms of credit history. As such, you may be asked to provide proof of consistent rent or utility payments or an international credit report.

As with a traditional mortgage, Canada newcomer mortgages require buyers to put down at least 5% of the first $ 500,000 of the purchase price and 10% for anything above that amount, up to a purchase price of $ 1,500,000. These funds must come from the buyers’ savings and cannot be borrowed from family or loved ones.

Your residency status plays a vital role in your ability to purchase property and qualify for a mortgage in Canada.

Canadian citizens and permanent residents generally have full access to the mortgage market, including competitive rates, standard down payment requirements, and a wide selection of lenders and products.

Non-residents, on the other hand, face more limitations. As of January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts non-Canadians from buying residential property in many areas across Canada. There are exceptions, such as for certain temporary residents (e.g., students or workers meeting specific criteria), but most non-residents are prohibited from purchasing residential property for the duration of the ban (currently extended through the end of 2026).

Even where non-residents are eligible to purchase, they often face:

  • Higher minimum down payments, often starting at 35% of the purchase price
  • More limited lender options
  • Additional documentation requirements, including proof of income and international credit standing
  • Higher interest rates in many cases due to perceived lending risk

Non-residents should also be aware of provincial foreign buyer taxes (often called non-resident speculation taxes) in areas like Ontario and British Columbia. For example, Ontario imposes a 25% Non-Resident Speculation Tax (NRST) on residential property purchases made by foreign nationals, corporations, or taxable trustees in certain regions.

 

It’s essential to work with a mortgage professional who understands the nuances of residency status, available exceptions, and tax implications, especially as policies continue to evolve.

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Contact The Mortgage Advisors for Personalized Assistance​

Even if you don’t have an established credit rating or history in Canada or a significant down payment, there are lots of options that will help you achieve the dream of owning a home. As a new Canadian, applying for a newcomer mortgage can feel overwhelming, but you’re not alone on this journey. Even if you don’t have an established credit history in Canada or a big down payment, there are many flexible options that can help make your dream of homeownership a reality.

Let us walk you through it, step by step. We’re here to answer your questions, explain your options, and make the process as smooth as possible.

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