What lenders offer, by status
Most lenders have a newcomer program; which one fits depends on your status in Canada and how long you have been here.
| Your status | What is usually available | What the lender wants to see |
|---|---|---|
| Permanent resident | Newcomer programs at banks, credit unions and the mortgage insurers, the companies that insure purchases with less than twenty percent down, with the same minimum down payment as other buyers, for people who arrived within the last few years. | Your PR card or confirmation of permanent residence, a job in Canada, and credit shown another way if you have no Canadian history yet. |
| Work permit | The same newcomer programs at most lenders, as long as the permit has time left on it. | The permit, a letter from your employer, pay stubs, and in some programs a larger down payment than a permanent resident would need. |
| Study permit | Few bank programs. Usually a larger down payment, a co-signer who lives in Canada, or a lender beyond the banks. | Proof of funds, who the co-signer is, and a plan for what happens when the permit ends. |
| Not yet in Canada | Different rules, a larger down payment, and in some cases a tax on the purchase or a restriction on the purchase itself. We say what applies before you look. | A conversation first. |
Credit, shown another way
A Canadian lender normally reads your credit report. If you arrived recently there is nothing on it yet, which is not the same as bad credit, and lenders know the difference. Newcomer programs accept other evidence.
An international credit report from the country you came from, where one exists and the lender accepts it. Or twelve months of bills paid on time: rent, with a letter from the landlord and the bank statements that show it leaving your account; a utility or phone bill in your name; a car payment. The lender wants a pattern, and the pattern can start before you land.
Start the Canadian one on day one. A credit card from your bank, used for groceries and paid in full every month, builds a history. Keep the balance well under the limit and never miss the date.
Down payment and gift letters
The rule is the same for everyone: the lender wants to see where the money came from. Ninety days of statements for the account it sits in, and a source for any large deposit. When the money came from abroad, that means the foreign account it left, the transfer, and the Canadian account it landed in, with the exchange documented. Start moving it early; a wire that lands the week before completion is a stressful wire.
Money from family is common and welcome. It needs a signed gift letter from an immediate family member saying the money is a gift and not a loan, and the lender may want to see it arrive in your account. Some programs want part of the down payment to be your own savings; we tell you which before you ask your family for anything.
The minimum down payment itself follows the same rules as for any buyer. Down payment rules, explained →
What to gather, including from abroad
The Canadian documents are the usual ones; the ones from home take longest, so start there.
- Your PR card or confirmation of permanent residence, or your work or study permit, and your passport
- A letter of employment and recent pay stubs; some lenders want the probation period finished, some accept an offer letter
- Canadian bank statements, and the foreign statements that show where the down payment started
- An international credit report, or twelve months of rent and utility payments with proof
- A signed gift letter, if part of the down payment is a gift
- Canadian notices of assessment, if you have filed a tax return here yet
- A certified translation of any document that is not in English
Do I have to have been in Canada for a certain time?
Most newcomer programs are for people who arrived within the last few years, not for people who have been here a minimum time. You can apply in your first months if you have a job and the down payment.
Can I buy before my first Canadian tax return?
Often, yes. A letter of employment and pay stubs do the work a notice of assessment would do later. If you work for yourself, the picture is different, and the self-employed page explains it.
Do I need a co-signer?
Usually not for a permanent resident or work-permit holder with a job and a down payment. On a study permit, often yes. A co-signer takes on the debt with you, so it is a decision for them too.
Will a lender accept a credit report from my home country?
Some will, from some countries, and the report has to come through a recognised credit bureau. Where it will not, twelve months of rent and bills does the job. We check before you pay for anything.
I am still on probation at work. Does that matter?
Some lenders wait until it ends; some accept the offer letter and a stub or two. It is one of the things that decides which lender we go to.
The team works in English, Hindi and Punjabi, and documents in any language are fine with a certified translation. Book a 20-minute call →