Newcomer Mortgage

New to Canada and want to purchase a home? Some government programs through CMHC (Canada Mortgage Housing Corporation) can help you start building your future with flexible qualification requirements, making it easier to qualify compared to traditional mortgages.

What is a Newcomer Mortgage?

What is a Newcomer Mortgage?

A Newcomer Mortgage is designed to help individuals who are new to Canada secure home financing despite having limited or no Canadian credit history or employment records. This type of mortgage has been built to recognize the unique challenges faced by newcomers and offers more flexible qualifying criteria compared to standard mortgage options.

To qualify for a Newcomer Mortgage, you typically need to have been in Canada for less than five years. This type of mortgage accommodates various scenarios, including non-permanent residents, permanent residents, refugees or temporary workers.

The qualification process for a Newcomer Mortgage is tailored to your circumstances. Some may qualify with as little as three months of work experience in Canada. To purchase a home valued under $500,000, a minimum down payment of 5% may be accepted. However, if you don’t have an established Canadian credit history, a higher down payment of 35% or more may be required to secure financing.

Securing a Mortgage as a Newcomer

After relocating to Canada, Jin, who had a successful career and substantial savings from her home country, found it challenging to secure a mortgage. Her limited credit history in Canada and short employment record made traditional banks reluctant to approve her application, despite her solid financial standing and sizeable down payment.

 

MonsterMortgage.ca guided Jin through specialized mortgage programs for newcomers and connected her with lenders who are more open to working with immigrants. By leveraging her international credit history and current employment, we secured a mortgage that matched her needs, allowing Jin to purchase her first home and settle into her new life.

Securing a Mortgage as a Newcomer

The MonsterMortgage.ca Difference

Our Customers Are Our Priority

With over 25 years of experience, we’ll work closely with you to assess your eligibility for different mortgage options, considering your financial situation and both short-term and long-term goals.

Get All The Facts

We’ll spend time understanding your needs and providing you with all the details and options to make an informed decision. Our independence allows us to focus on working for you. We partner with numerous lenders so we can find you the most advantageous deal.

Our Reputation

We are an award-winning Canadian mortgage brokerage firm with a weekly call-in show on CP24. We believe in giving back to our community. Over the years, we’ve proudly supported various community initiatives, including a 14-year partnership with the City of Toronto to raise millions of dollars for seniors.

Benefits

Flexible Qualification

Newcomer Mortgages offer more lenient qualification terms, making it easier to secure financing despite limited credit history.

Shorter Work History Required

You may qualify for a Newcomer Mortgage with as little as three months of work experience in Canada, compared to traditional mortgages that often require a longer employment history.

Competitive Rates

Newcomer mortgages often come with competitive interest rates and terms, allowing you to secure favourable financing. This means you can benefit from rates that help keep your monthly payments manageable and make homeownership more affordable.

Support for Non-Permanent Residents

Non-permanent residents, such as those on work or study permits, can also access Newcomer Mortgages. This option helps bridge the gap for those who are contributing to Canada’s economy but don’t yet have established credit.

Mortgage broker working at desk with laptop and papers

Have Questions?

We’re here to help you Get Started! Contact us with your questions, and we’ll offer personalized advice to guide you through your mortgage approval.

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FAQs

In Canada, only those with permanent resident (PR) status can typically secure a mortgage. If you are a non-permanent resident, you must hold a valid work permit to be eligible for a mortgage.

Permanent residents may purchase a home with as little as a 5% down payment, though this option comes with home price restrictions. Non-permanent residents generally need to provide a minimum of 10% down payment. If your down payment is less than 20%, you will require mortgage default insurance, which may help you qualify for a better rate.

Yes, as a newcomer, you can buy a primary residence in Canada if you:

  • Have a valid work permit and legal permission to work in Canada (additional details may apply)
  • Are a permanent resident
  • Are a refugee or temporary worker (additional details may apply)

For a newcomer mortgage application, you’ll generally need proof of identity, a valid work permit (if applicable), evidence of your income (such as pay stubs or employment letters), and proof of your down payment. Permanent residents must show their PR card or other evidence of status. It’s also useful to have a credit report from your home country, if available.

Typically, newcomer mortgages are designed for primary residences rather than investment properties. If you are a newcomer and wish to invest in a property, you may need to meet additional criteria and provide a larger down payment. It’s best to consult with a mortgage advisor to understand the specific requirements and options available.

With experience assisting over 100,000 Canadians, we’re here to help you explore your options, compare rates, and find the mortgage that suits you best.

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