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New to Canada? Here's What You Need to Know About Buying Your First Home
June 25, 2026 | Posted by: Jamie Small - Ottawa Mortgage Broker
Making the move to Canada is a major milestone, and for many newcomers, owning a home here is one of the most exciting goals on the horizon. The good news? It's absolutely achievable. And with the right mortgage team in your corner, the path to homeownership can be simpler than you might think.You Don't Have to Figure This Out Alone
Canada's mortgage landscape can feel overwhelming at first. Especially when you're still learning the ropes of a new financial system, building credit history, and settling into a new life. But here's what we want you to know: thousands of newcomers successfully purchase homes in Canada every year, and our team has helped many of them do exactly that.With years of experience working with New-to-Canada borrowers, we understand the unique challenges you face and, more importantly, know how to navigate them. Whether you arrived recently or have been building roots here for a few years, there are real programs designed to help you get into a home sooner than you might expect.
Let's walk you through what lenders are looking for and how you can set yourself up for success.
What Lenders Look for in New to Canada Borrowers
When you apply for a mortgage as a newcomer, lenders will evaluate a few key areas. Here's a breakdown of what matters most:1. Residency Status
Most lenders require you to hold permanent resident (PR) status, or to have already applied for it. In some cases, lenders may just require that you have a valid work permit. This has become especially important following the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which came into effect in recent years. If you're unsure where you stand, we can help you determine which programs you're eligible for based on your immigration status.2. Canadian Credit History
This is one of the most common hurdles for newcomers, and one of the most manageable. If you have limited or no Canadian credit history, lenders may ask for:- An international credit report (available from certain countries)
- 12 months of bank statements showing regular payments and good account management
- A letter of reference from a recognized financial institution
3. Proof of Income
Lenders want confidence that you can make your mortgage payments over the long term. In most cases, you'll need a minimum of 3 months of Canadian employment history, along with:- A letter of employment confirming your role and income
- Recent pay stubs
- T4s from prior years (where applicable)
4. Down Payment
Here's what you need to know about minimum down payments:- Purchase price $500,000 or less: Minimum 5% down
- Purchase price over $500,000: 5% on the first $500K, plus 10% on any amount above that
- Limited Canadian credit history: Many lenders will require a minimum of 10% down
3 Smart Steps to Strengthen Your Application
The earlier you start preparing, the more options you'll have. Here are some practical steps that can make a big difference:→ Build Your Credit Profile Early
Open a Canadian bank account as soon as possible. Consider a secured credit card. Use it regularly, but keep the balance low. Setting up a cell phone account is another easy win, as most carriers report to the credit bureau. Every positive payment builds your profile.→ Get Your Down Payment into Canada
Keep in mind that exchange rate fluctuations can affect how much your international savings translate to in Canadian dollars. Moving funds into a Canadian account early protects you from last-minute surprises and satisfies lender documentation requirements.→ Focus on Stable, Guaranteed Income
If you have less than two years of Canadian employment history, lenders will favour guaranteed income over variable earnings. A permanent, full-time position — even at a modest salary — often strengthens your application more than a higher-paying contract role. If you have a spouse or partner, an additional source of income can boost your borrowing power and your chances of approval.A Few Other Things to Keep in Mind
Mortgage Default Insurance
If your down payment is less than 20%, you'll need mortgage default insurance through CMHC, Sagen, or Canada Guaranty. This is a one-time cost that's added to your mortgage balance, but it's actually a good thing for newcomers. Default insurance reduces risk for lenders, leading to more flexible qualifying criteria and access to competitive rates.Closing Costs
In addition to your down payment, budget for closing costs, which typically range from 1.5% to 2% of the purchase price. These cover legal fees, land transfer tax, title insurance, property tax adjustments, and more. We'll make sure you go in prepared, with no surprises on closing day.Why Work with Our Team?
New to Canada mortgage files aren't one-size-fits-all, and not every broker has the experience to navigate them confidently. Our team has spent years building expertise in this space, working with lenders who offer the most flexible newcomer programs and understanding exactly what documentation each one requires.When you work with us, we:
- Assess your unique situation and match you with the right lender from the start
- Help you gather and organize the right documentation before you apply
- Shop your application across multiple lenders to secure the best mortgage terms available
- Advocate on your behalf every step of the way, through any complexity that arises
- Work at no cost to you. We’re compensated by the lenders, and not the borrower