Mortgage Broker for Newcomers to Canada: Down Payment, Credit and How to Qualify

If you moved to Canada in the last few years, buying a home is probably on your mind. Right behind that thought is the worry: can I get a mortgage here with no Canadian credit history, and how much do I need to put down?

In many cases, yes. I'm a Calgary mortgage broker and I work with newcomers all the time. The programs exist, and plenty of lenders want this business. This guide starts with the question I get asked most, the down payment, and then covers credit, jobs, documents and how to get started.

For the full program overview, see our newcomer mortgage page. The rest of this guide goes step by step.

How Much Down Payment Do Newcomers Need?

If you are a permanent resident, your minimum down payment follows the same rules as anyone else buying with an insured mortgage:

• Home up to $500,000: 5% minimum
• Home from $500,000 to $1,499,999: 5% on the first $500,000, plus 10% on the amount above $500,000
• Home $1,500,000 or more: 20% minimum (mortgage insurance is not available)

Calgary example: you're buying a $600,000 home. Your minimum down payment is 5% of $500,000 ($25,000) plus 10% of $100,000 ($10,000). That's $35,000. With less than 20% down, a mortgage insurance premium is added to the loan. Plan for closing costs on top of that. Our Alberta closing costs guide breaks those down.

If you're on a work permit, the picture depends on the insurer and the lender. CMHC, Sagen and Canada Guaranty all allow some non-permanent residents into their insured programs. Some lenders follow those rules as written. Others add their own limits, like a higher down payment, more time left on your permit, or a longer job history in Canada. That's why shopping one bank is risky for work permit buyers.

Work permit buyers also need to check the federal foreign buyer ban. It runs until January 1, 2027. It does not apply to permanent residents. Work permit holders can be exempt if their permit has at least 183 days left on the purchase date and they don't already own a home in Canada. Our work permit buyer guide walks through the details.

Where Your Down Payment Can Come From

This is where many newcomer files slow down. The money is there, but the paper trail isn't. Here's what lenders usually accept and what they ask to see.

Savings from your home country

Yes, you can use money you saved before you moved. Lenders usually want bank statements that show the money building up over time (often 90 days of history), plus the wire or transfer records showing it moved to Canada. It's smart to move the funds early. Lenders want the money sitting in a Canadian account before closing, and large wires can take time. Read more in our guide to foreign funds and foreign income.

A gift from family

Insurers allow a non-repayable gift from a close relative, like a parent or sibling. You'll need a signed gift letter saying the money never has to be paid back, plus proof the funds landed in your account. Gifts from family overseas are common. Some lenders want part of the down payment from your own savings, so check this early. Our gifted down payment guide has the full checklist.

FHSA and RRSP

Once you have a SIN and file taxes in Canada, you may be able to open a First Home Savings Account. You can also use the Home Buyers' Plan to take money out of your RRSP. See how RRSP, TFSA and FHSA money works for a down payment.

Selling a property

If you sold a home back home or in another province, the sale agreement and the deposit record usually cover it.

Borrowed money

Borrowed down payments are limited. Some insured programs allow them in narrow cases for permanent residents. CMHC does not allow them for non-permanent residents. In most newcomer files, plan on savings or a gift.

No Canadian Credit History? Here's What Lenders Use Instead

A thin credit file doesn't mean you're a risk. It just means you're new. The insurers' newcomer programs let lenders look at other proof that you pay your bills. Depending on the insurer and how much you put down, that can include:

• An international credit report from your home country
• A reference letter from your bank back home
• 12 months of rent payments, backed by a landlord letter and bank statements
• 12 months of other bills, like utilities, phone or car insurance
• Six months or more of bank statements showing your account in good standing

The rules are often stricter when you put down only 5%. With 10% or more down, some programs accept fewer documents. If you already have a Canadian score, at least one borrower usually needs to meet the insurer's minimum. Our minimum credit score guide explains how scores work across lenders.

Job and Income Rules for Newcomers

Most insured newcomer programs want to see at least 3 months of full-time work in Canada. Some lenders want more. Here's what usually helps:

• Full-time, permanent work. A job letter showing your title, pay, hours and start date. If you're still on probation, tell us up front. Some lenders are fine with it and some aren't.
• Same line of work as back home. If you were a nurse, engineer or trucker before you moved and you're doing the same job here, some lenders give credit for that experience.
• Pay stubs and deposits. Recent pay stubs that match the deposits in your bank account.
• Hourly, overtime or contract pay. These can work, but lenders may want a longer history before they count the extra income.
• Self-employed newcomers. This is harder in year one. Some lenders will look at it, often with a larger down payment.

Lenders count Canadian income to qualify you. Income you still earn from abroad usually doesn't count, but any debts you still have back home do count against you.

Newcomer Mortgage Programs: What's Out There

Canada's three mortgage insurers, CMHC, Sagen and Canada Guaranty, all have newcomer programs. They're built for people with a thin Canadian credit file. Many banks and credit unions run their own versions on top of those rules. The details vary a lot from one lender to the next: how long since you arrived (often within the last 5 years), whether work permits are accepted, what credit proof they take, and how much you need down.

The full range of options looks like this:

• A-lenders (banks, credit unions and monoline lenders) run the insured newcomer programs and usually cost the least when your file fits their rules.
• B-lenders can help when the file doesn't fit, like a short job history, self-employment, or a debt load above the usual limits. They often need a bigger down payment and cost more.
• Private lenders focus on the property and your equity. They usually want 20% to 25% or more down and cost the most. They're a short-term bridge, not a long-term plan.

A broker can compare these side by side. A bank can only show you its own program.

Who Counts as a Newcomer?

For most lenders, a newcomer is someone who moved to Canada in the last 5 years. That includes:

• Permanent residents (PR). Full access to insured mortgages, with as little as 5% down on homes under $1.5 million.
• Work permit holders. Options depend on the insurer, the lender, your job and how long your permit has left.
• Protected persons and refugees with PR status. The same rules as any other permanent resident.

What Documents Do Newcomers Need?

Having these ready before you apply can save weeks.

Immigration documents

• Permanent Resident Card or Confirmation of Permanent Residence (COPR)
• Valid work permit (if that applies to you)
• Passport

Income and employment

• Job letter confirming your position, pay, hours and start date
• Recent pay stubs
• Bank statements showing your pay going in
• T4 slips and Notice of Assessment (if you've filed a Canadian tax return)

Credit documents (if you have no Canadian credit)

• International credit report
• Reference letter from your bank back home
• Landlord letter and 12 months of rent payments
• 12 months of utility, phone or insurance bills

Down payment proof

• Canadian bank statements showing your savings
• Home-country bank statements (if funds are coming from abroad)
• Wire transfer confirmations
• Signed gift letter and proof of deposit (if family is helping)

The Stress Test: Same Rules for Everyone

Newcomers go through the same mortgage stress test as everyone else. You qualify at the higher of 5.25% or your contract rate plus 2 percentage points. For insured mortgages, most lenders also keep your housing costs near 39% of gross income and your total debts near 44%. Car loans, student loans and debts back home all count. B-lenders can sometimes go higher, depending on the file.

Why Calgary Works Well for Newcomer Buyers

I live here, so I'm biased. But Alberta has real cost advantages over Ontario and B.C.:

No land transfer tax. In Ontario, the provincial land transfer tax on a $600,000 home is $8,475, and Toronto adds a second tax on top. In Alberta, you pay land titles registration fees instead. Since October 2024 that's $50 plus $5 for every $5,000 of the price, and the same again on the mortgage. On a $600,000 purchase with an insured mortgage, that comes to roughly $1,300 in total.

No provincial sales tax. Alberta charges only the 5% GST. There's also no provincial sales tax on your mortgage insurance premium here. Some other provinces charge one.

No provincial foreign buyer tax. Ontario and B.C. both charge extra tax on some foreign buyers. Alberta doesn't. The federal foreign buyer ban described above still applies, so work permit holders should confirm they're exempt.

Lower prices than Toronto or Vancouver. Calgary prices have climbed, but a newcomer with a steady income and 5% down can still get into the market here.

Gold Lion works with newcomers across Canada, not just Calgary. If you're settling in southern Alberta, our Lethbridge mortgage broker page covers that market.

Building Canadian Credit: Start Before You Need a Mortgage

Even if you're not buying soon, start building Canadian credit the week you arrive:

1. Open a Canadian bank account. Most banks have newcomer packages.
2. Get a credit card, secured if you need to. Every on-time payment builds your credit history.
3. Add a second credit product within 3 to 6 months, like a phone plan in your name or a second card. Lenders like to see at least two active accounts.
4. Keep balances low (under 30% of the limit is a good rule) and pay on time every month.

Do this for a year and you'll have a real Canadian score to show lenders. That can open up more lender choices and save you money.

First-Time Buyer Programs Newcomers Can Use

If this is your first home, you may also qualify for Canada's first-time buyer programs:

• First Home Savings Account (FHSA): save up to $8,000 a year (lifetime max $40,000). Deposits are tax-deductible and qualifying withdrawals for your first home are tax-free.
• Home Buyers' Plan (HBP): take up to $60,000 per person from your RRSPs for a down payment, then pay it back over 15 years.
• First-Time Home Buyers' Tax Credit: up to $1,500 back on your taxes.
• 30-year amortization: since December 15, 2024, first-time buyers can stretch an insured mortgage to 30 years. That lowers the payment. See how the 30-year option works.
• New build GST relief: first-time buyers of a new home may qualify for GST relief. Our GST rebate guide covers who qualifies.

Getting pre-approved early shows you what you can afford and holds a rate while you shop.

Common Questions from Newcomers

Can a newcomer buy a home with 5% down?

Often, yes. Permanent residents can use insured newcomer programs with as little as 5% down on homes under $1.5 million. Some insurers also accept work permit holders at 5% down, but some lenders ask for 10% or more. Your job, your credit proof and the lender all affect the answer.

Can I use savings from my home country as a down payment?

Yes. Lenders usually want bank statements showing the money building up (often 90 days of history) and the wire records showing it moved to Canada. Move it early. Lenders want it in a Canadian account before closing.

Can my parents back home gift me the down payment?

In many cases, yes. Insurers accept a non-repayable gift from a close relative. You'll need a signed gift letter and proof the money landed in your account. Some lenders want part of the down payment from your own savings, so ask before you count on a full gift.

What if I've only worked in Canada for 2 months?

Most insured newcomer programs want at least 3 months of full-time work in Canada. If you're at 2 months, we can often get the file ready now and submit once you reach 3 months. Some lenders also give credit for the same type of work back home.

Do I need mortgage insurance?

If you put down less than 20%, yes. Mortgage default insurance costs about 2.80% to 4.00% of the mortgage amount, depending on your down payment, and is added to your mortgage balance. Alberta does not charge sales tax on the premium.

Can I pick a variable or fixed rate?

Yes. Newcomers have the same choices as anyone else. Which one fits depends on your budget and how much payment change you can live with. See our variable vs fixed guide.

How I Help Newcomers Buy Homes

I work with newcomers from all over the world: India, the Philippines, Nigeria, Pakistan, Ukraine, China and many more. Here's how it works:

1. Free consultation. We go over your status, job, income, savings and any Canadian credit. It takes about 15 to 20 minutes.
2. Lender matching. I compare newcomer programs across many lenders and show you which ones fit your file, not just one bank's option.
3. Document prep. I tell you exactly what to gather, including the down payment paper trail, before we submit.
4. Application and approval. I send the file, deal with the lender, and keep you posted.
5. Closing support. From rate hold to lawyer to possession day, I stay with you.

Related reading: Newcomer mortgages at Gold Lion · New to Canada mortgage guide · Buying on a work permit · Gifted down payments · Foreign funds and income · Newcomer guide for Punjabi families

Published: March 31, 2026. Updated: October 5, 2026 — down payment sources, work permit rules, credit alternatives, job requirements and Alberta land titles fees refreshed. Insurer and lender newcomer rules change often and vary by lender. Contact Gold Lion Mortgages to confirm what applies to your file.

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