Can newcomers to Canada get a mortgage?

Yes. Canadian citizens, permanent residents, and work permit holders can all qualify for a mortgage in Canada. Requirements vary by immigration status. Permanent residents have the same rights as citizens. Work permit holders typically need a minimum 20–35% down payment and proof of 183+ days of Canadian employment.

What is the mortgage stress test in Canada?

The Canadian mortgage stress test requires you to qualify at the higher of your contract rate plus 2%, or 5.25% — whichever is greater. This means you must prove you can afford payments at a higher rate than you'll actually pay. It reduces your maximum mortgage by roughly 20%.

How much down payment do I need to buy a home in Canada?

The minimum down payment in Canada is 5% for homes priced under $500,000. For homes between $500,000 and $999,999, it's 5% on the first $500K and 10% on the remainder. Homes over $1 million require 20% down. Work permit holders typically need 20–35% down.

What is the First Home Savings Account (FHSA)?

The FHSA is a registered account that lets first-time buyers save up to $8,000 per year (lifetime limit $40,000). Contributions are tax-deductible (like an RRSP) and qualifying withdrawals for a first home purchase are tax-free (like a TFSA). It is one of the most powerful savings tools available to first-time buyers in Canada.

What documents do I need for a mortgage as a newcomer?

Newcomers typically need: government-issued ID, work permit or PR card, employment letter and recent pay stubs, 2 years of Notice of Assessments (NOAs) if available, 3 months of bank statements, and proof of down payment. Some lenders have special newcomer programs with reduced documentation requirements.

Newcomer Mortgage Guide: How to Get a Mortgage in Canada

Buying a home as a newcomer to Canada is absolutely possible — but the process has important differences depending on your immigration status. This guide explains exactly what you need to know before you apply for a mortgage.

Who Can Get a Mortgage in Canada?

Canadian mortgage lenders generally require borrowers to be:

Canadian citizens — full access to all programs
Permanent Residents (PRs) — same rights as citizens; full access to all programs including CMHC-insured mortgages
Work Permit Holders — eligible with conditions (see below)
Refugee/Protected Persons — generally eligible; some lenders have specific programs

Student permit holders and visitors face significant restrictions and may need a private lender or co-signer.

Work Permit Holders: Key Rules

If you hold a valid work permit, you can apply for a Canadian mortgage if:

You have worked in Canada for at least 183 days in the last 12 months
Your work permit is still valid (and ideally has significant time remaining)
You can demonstrate stable, verifiable Canadian income

Important: Most major lenders will require a minimum 20–35% down payment from work permit holders, because CMHC mortgage insurance is not available for non-permanent residents in most cases.

The Mortgage Stress Test

All borrowers in Canada — regardless of immigration status — must pass the mortgage stress test. This means you must qualify at:

Your contract interest rate + 2%, OR
5.25% (the regulatory floor), whichever is higher

As of early 2026, most 5-year fixed rates are around 4.8–5.2%, making the qualifying rate approximately 6.8–7.2%. This reduces your maximum mortgage by roughly 20% compared to qualifying at the contract rate alone.

Documents You Will Need

Lenders will require:

2 years of Notice of Assessment (NOA) from the CRA, or T4 slips
Most recent 3 months of pay stubs
3 months of bank statements showing down payment
Employment letter (confirming position, salary, and length of service)
Government-issued ID (passport)
Proof of immigration status (PR card, work permit, etc.)

Self-employed newcomers face additional requirements: 2 full years of T1 General tax returns and business financials if incorporated.

First-Time Buyer Programs for Newcomers

First Home Savings Account (FHSA): Available to Canadian residents (including PRs). Contribute up to $8,000/year, $40,000 lifetime. Contributions are tax-deductible, and withdrawals for a qualifying first home are tax-free. Open one as soon as you arrive.

RRSP Home Buyers' Plan: Withdraw up to $60,000 from your RRSP tax-free for a first home. Must repay over 15 years. Available to PRs and citizens.

First-Time Home Buyer Tax Credit: Claim $10,000 on your T1 for a $1,500 federal tax credit. Available to PRs and citizens who have not owned a home in the last 4 years.

Mortgage Brokers vs. Banks for Newcomers

A mortgage broker shops your application across multiple lenders simultaneously and often secures better rates. For newcomers, brokers are particularly valuable because some lenders specialize in newcomer mortgages and offer programs that major banks don't advertise. Working with a broker costs you nothing — they're paid by the lender.

Source: CMHC Newcomer Guide, Government of Canada IRCC, Office of the Superintendent of Financial Institutions. Updated January 2026.