New to Canada
Plan a home purchase around your status and income. Speak with Puneet Mann, a Mortgage Agent Level 2 in Brampton.
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How lenders see
Lenders review your income, employment, credit history and down payment. A short Canadian credit file may be assessed alongside other evidence, including an international credit report or a reference letter from a financial institution in your previous country.
Permanent residents and eligible work permit holders can be considered for insured mortgages, but requirements vary by lender and program. The documents you can provide, the source of your down payment and the home you plan to buy all shape the review.
- A lenders: Banks and credit unionsSome offer newcomer programs for permanent residents and eligible work permit holders. Credit and down-payment requirements vary.
- B lenders: Alternative lendersSome assess income or credit using different criteria. Down-payment requirements, borrowing costs and conditions vary.
- C lenders: Private lendersOften offer short-term, interest-only financing at a higher cost. A realistic plan to refinance, sell or repay at the end of the term is essential.
The application process
Puneet’s Level 2 licence covers bank, alternative and private lending. These are the main stages of an application.
Questions people ask
Can I get a mortgage on a work permit?
Some lenders consider applicants who hold a valid work permit. They review your work authorization, employment, credit and down payment. A real estate lawyer should also confirm that you are legally eligible to buy the property.
Do I need a Canadian credit history?
Some newcomer programs accept an international credit report, a reference letter from a financial institution in your previous country or other records, such as rent payments, when Canadian credit history is short. Requirements vary by lender.
How much do I need for a down payment?
The minimum depends on the home’s purchase price. The amount a lender asks you to contribute can also depend on the mortgage program and your financial circumstances. Budget for closing costs and any taxes that apply to your status.
Can I use money from outside Canada?
Yes, if the lender accepts the source and you can document it. Keep statements showing where the money was held and records of its transfer. Ask early what proof the lender needs, especially if the funds are a gift.
Can I buy a home if I’m not a permanent resident?
Possibly. Federal purchase rules have exceptions for some temporary residents, including eligible work permit holders. Ontario’s Non-Resident Speculation Tax may still apply. Have a real estate lawyer confirm your eligibility and costs before making an offer. The purchase rules apply regardless of which mortgage lender you use.
What documents will I need?
The lender sets the final list. Common starting points include:
- Your passport and proof of permanent resident status or a valid work permit
- An employment letter, recent pay stubs or other income records
- Bank statements showing your down payment and its source, including transfer records for funds from abroad
- Available credit records or other evidence of your payment history
- A purchase agreement and property listing once you have chosen a home
The lender may request more based on your status, source of funds and the property.
Other situations
A, B and C lending explained
02InvestorsFinancing for your first rental or next investment.
03First-time home buyersUnderstand your budget and plan your first purchase.
04Moving homesPlan your next mortgage around your sale and purchase.
05RefinancingReview home equity, refinancing and renewal options.