Newcomers to Canada can qualify for a mortgage with as little as 5 percent down, even without a Canadian credit history. CMHC, Sagen, and Canada Guaranty all run newcomer mortgage programs that let lenders accept an international credit report or twelve months of rent and utility payments in place of a Canadian credit score.
For mortgage purposes, a newcomer is generally someone who arrived in Canada within the last five years and holds either permanent resident status or a valid work permit. The CMHC Newcomers program has no minimum residency period. You could land in Toronto in March and buy a condo in June, provided your income and down payment support the purchase.
Permanent residents follow the same insured mortgage rules as Canadian citizens: 5 percent on the first $500,000 of the purchase price and 10 percent on the portion between $500,000 and $1 million. Work permit holders usually need at least 10 percent, and some lenders ask for more. Any home priced above $1 million requires 20 percent down regardless of status, which matters in Toronto where many detached houses sit above that line.
Lenders verify income the usual way, through employment letters and pay stubs, and every insured application must still pass the mortgage stress test. What changes for newcomers is the credit file. If you have no Canadian score yet, an international credit bureau report or documented rent and utility payments can stand in for one. Once your Canadian file is established, a credit score of 680 or higher opens the widest range of lenders.
Two policies affect non-residents. The federal prohibition on residential purchases by non-Canadians runs until January 1, 2027, though work permit holders with at least 183 days remaining on their permit are exempt when buying a first home. Ontario also charges a 25 percent Non-Resident Speculation Tax on purchases by foreign nationals. Permanent residents are exempt from both.
Related reading: How Much Down Payment Do You Need in Toronto?, What Credit Score Do You Need to Buy a Home in Canada?, and Mortgage Stress Test in Canada: How It Works.