How to Get a Mortgage in Canada as a Newcomer: 2026 Guide

Can Newcomers Get a Mortgage in Canada?

Yes — permanent residents and some work permit holders can qualify for a Canadian mortgage. The process is similar to what any Canadian goes through, but with some additional documentation requirements and potentially higher down payment expectations.

Who Qualifies

• Permanent residents: Eligible immediately for standard mortgages with 5% down (CMHC insured)
• Work permit holders: Many lenders offer newcomer mortgages with 10–35% down depending on how long you've been in Canada and your employment stability
• Temporary foreign workers: Some specialized lenders work with TFWs; typically require 35% down

The CMHC Newcomer Program

Canada Mortgage and Housing Corporation (CMHC) has a dedicated Newcomer to Canada program that allows recently arrived permanent residents to access insured mortgages (down payments as low as 5%) even without Canadian credit history, as long as:

• You are a permanent resident
• The property is in Canada and will be your primary residence
• You have a steady employment income
• You can demonstrate alternative credit history (rental payment records, utility bills, international credit report)

How Much Down Payment Do You Need?

• Homes under $500,000: Minimum 5% down
• Homes $500,000–$999,999: 5% on first $500K + 10% on remainder
• Homes $1 million+: Minimum 20% down (no CMHC insurance available)

Building Your Mortgage Application

Lenders look at:

• Income: T4 slips, pay stubs, letter of employment, 2 years of tax returns if self-employed
• Credit score: Aim for 680+ for the best rates (see: how to build credit as a newcomer)
• Down payment source: Must be documented — bank statements showing funds in Canada for 90+ days
• GDS/TDS ratios: Your housing costs should be under 32% of gross income (GDS) and total debt under 44% (TDS)

Mortgage Rates in Canada

Canadian mortgages come in fixed and variable rates:

• Fixed rate: Your rate stays the same for the term (1–10 years, most popular is 5 years)
• Variable rate: Fluctuates with the Bank of Canada prime rate — lower rate but more risk

As of 2026, rates vary significantly. Always get quotes from at least 3–4 lenders including banks, credit unions, and mortgage brokers.

Mortgage Brokers vs. Banks

A mortgage broker can shop multiple lenders for you and often find better rates than going directly to a bank. For newcomers, brokers familiar with newcomer programs can be especially valuable.

Also read: Renting and housing in Canada for newcomers