Welcome to Canadian Homeownership
New to Canada? You can still get a mortgage, even with limited Canadian credit history.
We understand the unique challenges newcomers face when buying a home in Canada. Our specialized mortgage programs are designed to help you achieve your dream of homeownership, regardless of how long you've been in the country.
Who Qualifies for a New to Canada Mortgage?
If you're new to Canada, you may qualify for a mortgage even if you haven't established a credit history yet.
Recently landed immigrants with permanent resident status can apply for mortgage financing.
Individuals with valid work permits and stable employment in Canada may qualify.
Full-time international students with co-signers or substantial down payments may be eligible.
Refugees and protected persons with proper documentation can apply for mortgage programs.
What Makes New to Canada Mortgages Different?
These specialized mortgage programs are designed with newcomers in mind.
Higher Down Payments
Typically require 35% down payment, though exceptions exist for those with established Canadian employment (20% minimum with 1+ years at a Canadian employer).
Limited Credit History Accepted
Lenders understand you may not have a Canadian credit history. Alternative documentation and reference letters from your home country can be used.
Foreign Income Considered
Some lenders will consider foreign income if you're employed by an international company with Canadian operations or have remote work arrangements.
Extended Amortization Options
Depending on your down payment, you may be eligible for amortization periods up to 30 years to make monthly payments more affordable.
Required Documentation
Having these documents ready will help streamline your mortgage application process.
- Valid passport
- Permanent resident card or work permit
- Study permit (if applicable)
- Landing papers or confirmation of permanent residence
- Letter of employment
- Recent pay stubs (2-3 months)
- Job offer letter
- Notice of Assessment (if available)
- 90-day bank statements
- Gift letter (if applicable)
- Proof of funds transfer to Canada
- Sale of property documents (if applicable)
- Reference letter from previous bank
- International credit report (if available)
- Canadian credit report (if established)
- Payment history documentation
- Current lease agreement
- Rent payment receipts or cancelled checks
- Landlord reference letter
- Proof of on-time payments
- Photo identification
- Proof of address in Canada
- Employment history (last 2 years)
- Educational credentials
Your Path to Homeownership
Follow these five steps to make your dream of owning a Canadian home a reality.
Get Pre-Approved
Contact a mortgage specialist who understands newcomer programs. Get a clear picture of how much you can borrow.
Save Down Payment
Build your down payment fund. Remember, you'll typically need 35% of the home's value, or 20% with qualifying employment.
Find Your Home
Work with a Sutton real estate agent to find properties within your budget. We understand the needs of newcomers.
Complete Application
Submit your mortgage application with all required documentation. Our team will guide you through each requirement.
Close Purchase
Finalize your mortgage, complete the home inspection, and take possession of your new Canadian home!
Understanding Down Payment Requirements
Down payment requirements vary based on your situation and employment status.
35% Minimum Down Payment
Most newcomers will need to provide 35% of the home's purchase price as a down payment. This higher requirement reflects limited Canadian credit history.
Example: For a $500,000 home, you would need $175,000 as a down payment.
20% Minimum Down Payment
If you've been employed by a Canadian employer for 1+ years with stable income, you may qualify for a lower 20% down payment requirement.
Example: For a $500,000 home, you would need $100,000 as a down payment.
Good news! Many lenders accept gift funds from immediate family members to help with your down payment. Requirements include:
- A signed gift letter stating the funds are a gift, not a loan
- Proof of the donor's ability to provide the gift
- Documentation showing the transfer of funds to your account
- You must still contribute at least 5% from your own resources
Building Your Canadian Credit
Start building a strong credit history in Canada to improve your mortgage options.
Start with a chequing and savings account at a major Canadian bank. This is your first step to establishing a financial presence in Canada.
Apply for a secured credit card which requires a cash deposit as collateral. Use it regularly and pay it off in full each month.
Set up automatic payments for rent, utilities, phone, and internet bills. Consistent on-time payments build positive credit history.
Use less than 30% of your available credit limit. This shows lenders you can manage credit responsibly without overextending.
Some banks offer credit builder loans designed specifically for newcomers. These small loans help establish payment history.
Check your credit report regularly through Equifax or TransUnion Canada. Look for errors and track your progress.
Why Work With Sutton Group?
We specialize in helping newcomers navigate the Canadian real estate market with confidence.
Experienced Lender Network
We work with mortgage lenders who specialize in newcomer programs and understand the unique challenges you face. Our network includes major banks and alternative lenders with competitive rates.
Multi-Language Support
Our team speaks multiple languages and understands diverse cultural backgrounds. We're here to explain the Canadian real estate process in a language you're comfortable with.
Complete Real Estate Guidance
From finding the right neighborhood to understanding Canadian real estate contracts, our agents provide comprehensive support throughout your home buying journey.
Settlement Service Connections
We can connect you with lawyers, home inspectors, insurance brokers, and other professionals who have experience working with newcomers to Canada.
Newcomer Success Stories
Real stories from newcomers who successfully purchased their Canadian homes with Sutton.
Sanjay Patel
From India - Toronto, ON
"I arrived in Canada with a work permit and thought I'd have to wait years before owning a home. Sutton's team helped me understand the newcomer mortgage program, and within 8 months of arriving, I purchased my first condo. The multi-language support made everything so much easier!"
Purchased: 2-bedroom condo in Scarborough
Maria Chen
From Philippines - Vancouver, BC
"As a permanent resident with only 6 months of Canadian credit history, I was nervous about applying for a mortgage. The Sutton advisor explained that my employment letter and down payment would be enough. I closed on my townhouse just 4 months later!"
Purchased: 3-bedroom townhouse in Surrey
Ahmed Khalil
From Egypt - Calgary, AB
"Coming from Egypt as a protected person, I didn't think homeownership would be possible so quickly. Sutton connected me with lenders who understood my situation and accepted my employment income. My family now has a place to call home in Canada!"
Purchased: Single-family home in Calgary
Helpful Resources for Newcomers
Explore these valuable resources to help you settle in Canada and prepare for homeownership.
Official information about immigration status, work permits, and permanent residency applications.
Visit WebsiteCheck your Canadian credit report and score. Free annual credit reports available.
Visit WebsiteCanada Mortgage and Housing Corporation resources for first-time home buyers.
Visit WebsiteFind local settlement services that can help you adjust to life in Canada.
Visit WebsiteLearn about mortgages, banking, and managing your finances in Canada.
Visit WebsiteMost Canadian banks offer special packages for newcomers with no-fee accounts.
Ask Us for RecommendationsFrequently Asked Questions
Get answers to common questions about newcomer mortgages in Canada.
Ready to Start Your Canadian Homeownership Journey?
Don't let being new to Canada hold you back from owning your dream home. Our experienced team is here to guide you every step of the way.
Serving newcomers across Canada - Multi-language support available - Licensed mortgage specialists