There isn’t one single “New Immigrant Mortgage Program” in Canada. Instead, multiple banks, mortgage insurers, and brokers offer special mortgage options for newcomers. These are commonly called New to Canada, Newcomer, or New Immigrant mortgage programs.
These programs help immigrants (permanent or temporary) buy a home even if they have little or no Canadian credit history.
Lenders understand the challenges newcomers face, so many of these programs offer flexible credit checks, alternative documents, and lower down payment options.
Who Qualifies as a “New Immigrant”?
Most lenders allow applications from:
1. Permanent Residents (PR)
Recently obtained PR status
No or limited Canadian credit history
2. Temporary Residents/Work Permit Holders
Valid work permits
Some lenders accept temporary workers as long as income is stable
3. Newcomers in Canada for Less Than 5 Years
Most “New to Canada” programs are designed for those here under five years
4. Employment Requirements
Some lenders ask for:
3 months of full-time Canadian employment
OR a valid job contract
Why Do These Programs Exist?
New immigrants often face similar difficulties:
Challenges Newcomers Face
No Canadian credit history
Limited savings for a down payment
Unfamiliarity with the Canadian mortgage process
Difficulty meeting traditional banking requirements
To help with this, mortgage insurers like CMHC, Sagen, and Canada Guaranty created programs that reduce lender risk and make it easier for newcomers to buy homes.
Key Features of New Immigrant Mortgage Programs
1. Down Payment Requirements
As low as 5% for homes up to $500,000
Higher down payments (like 10%) for more expensive homes
Down payment can come from:
Personal savings
Gifts from family (with gift letter)
2. Flexible Credit Options
When you don’t have a Canadian credit report, lenders may accept:
International credit bureau reports
Rental payment history
Utility bills (phone, insurance, cable, hydro)
Bank statements showing consistent payments
Some programs even accept applicants with no Canadian credit if alternative credit is strong.
3. Income & Employment Verification
Lenders usually require:
Job letter
Recent pay stubs
Employment contract
Some programs allow:
Only 3 months of Canadian employment
Exceptions for corporate transfers (no job letter required)
4. Mandatory Mortgage Insurance
Since newcomers often provide small down payments, mortgage insurance is usually required.
Canada’s main insurers:
CMHC
Sagen
Canada Guaranty
Example:
Canada Guaranty’s Maple Leaf Advantage → allows 5% down for newcomers under certain conditions.
5. Loan Terms / Amortization
Standard amortization up to 25 years
Some lenders offer long rate holds (e.g., 120-day rate guarantee)
6. Eligible Property Types
Owner-occupied homes (condos, townhouses, detached homes)
Some programs accept small multi-unit homes if you live in one unit
Property value limits exist (e.g., under $1,000,000 for some insurer programs)
Examples of Lenders Offering Newcomer Programs
RBC (Royal Bank of Canada)
5% minimum down payment
Flexible credit requirements for newcomers
TD Bank
New-to-Canada Mortgage
120-day rate hold
Requires 3 months of full-time Canadian employment
Sagen (Insurer)
Allows rent, utilities, and other alternative credit documents
Canada Guaranty
“Maple Leaf Advantage” program
5% down payment option for newcomers
RMG Mortgages
Accepts international credit bureaus or two Canadian non-traditional credit sources
SkipTheBank
Accepts newcomers even without Canadian credit history
Risks and Challenges to Be Aware Of
1. Higher Interest Rates
Some lenders charge higher rates due to higher risk
2. Insurance Costs
Mortgage insurance adds to monthly payments
3. Documentation Requirements
Alternative credit sources require detailed proof (e.g., landlord letters)
4. Employment Instability
Changing jobs can affect approval or renewal
5. Down Payment Verification
Lenders must confirm the source of funds
Gift letters/documentary proof required
6. Long-Term Debt
Mortgage is a long-term financial responsibility
Must ensure stable income
7. Market Fluctuations
Home prices and interest rates can change
Newcomers need to consider affordability
Tips for New Immigrants Applying for These Programs
✔️ Work With a Mortgage Broker
They know the best lenders for newcomers and help with paperwork.
✔️ Build Canadian Credit Early
Open a bank account
Get a secured or regular credit card
Make small purchases and pay on time
Take small loans and repay them
✔️ Keep Organized Proof of Alternative Credit
Rent receipts
Utility bills
Bank statements
Landlord reference letters
✔️ Save for Your Down Payment
Save more than the minimum
Keep evidence of where the savings came from
Get a gift letter if needed
✔️ Prepare Strong Employment Documents
Employer letter
Contract
Recent pay stubs
✔️ Get Pre-Approved
Shows how much you can afford
Strengthens your offer when buying a home
✔️ Understand Mortgage Insurance Costs
Know how insurance impacts monthly payments
✔️ Evaluate Long-Term Costs
Mortgage payments
Property taxes
Utilities
Repairs and maintenance
Why These Programs Matter for New Immigrants
1. Stability & Security
Owning a home helps immigrants settle down longer-term.
2. Wealth Building
Monthly payments build equity instead of paying rent.
3. Community Integration
Homeownership strengthens stability and belonging.
4. Faster Entry into Real Estate Market
Flexible requirements help newcomers buy sooner.
Conclusion
There is no single government-run “New Immigrant Mortgage Program,” but Canada offers a variety of New to Canada mortgage options through banks, brokers, and insurers. These programs provide:
Flexible credit requirements
Lower down payments
Support for people with limited Canadian financial history
If you’re a new immigrant whether a PR or work permit holder these programs can make homeownership much more achievable.
With proper planning, saved documents, steady employment, and the help of a good mortgage broker, newcomers can successfully buy a home and start building a stable future in Canada.
