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We know it is not easy for-newcomers to obtain a mortgage and to prove the income requirement.

New to Canada have no credit rating, or very new credit, that is considered a high-risk borrower because that applicant has not demonstrated the ability to repay debt by making regular payments on time and as agreed.

As a new immigrant in Canada, (less than 36 months), you might be allegeable for the New to Canada Mortgage Program, which would allow you to obtain a mortgage with a down payment of 5% (up to 95% LTV) with no minimum income requirement and with extended amortizations.

Once the applicant has a valid work permit (including temporary work permit with SIN start with 9), or a permanent residence status he can apply for a mortgage.

The guidelines for credit, employment, income, debt service ratios include any debts held outside of Canada, and down payment will also apply, and they are similar to qualification guidelines for non-immigrants.

-          Employment and income – lenders and insurer requirement: Employment confirmation letter and recent paystub, most recent T4, most recent NOA.

-          Down payment verification: verifying the source of the applicant’s down payment.


How to apply:

For new immigrants, lenders will recognize alternative credit references such as:

  • Confirmation of rent paid, plus savings for the previous 12 months.
  • Confirmation of payments such as utilities, cable, childcare, for the previous 12 months.
  • A letter of reference from a bank and six months of bank statements.


-          Some lenders will also recognize and accept an international credit report.


A High-Ratio Mortgage

-              For new immigrants who require high-ratio mortgage financing, less than 20% down payment,    with no Canadian credit history, lenders will base their decision on the application as a whole, taking into consideration net worth, employment history, and the property being purchased. 


To be approved for a conventional mortgage with a prime lender, a new immigrant applicant must:

  • Be considered an acceptable credit risk based on a bank reference from the county of origin and or an international credit report.
  • Have other assets (net worth)
  • Have employment history in Canada


If the new immigrant applicant does not qualify for a high ratio mortgage under the bank guidelines, and has credit and/or income issues an alternative lender may be able to help.

Call us 416-900-1425 to find out if we can assist you in determining if you meet the requirements for Mortgage-For-Newcomers-To-Canada.