How lenders look at newcomers & non-residents borrowers
1Several lenders and mortgage insurers have newcomer programs for permanent residents and work-permit holders.
2With little Canadian credit, lenders may accept a reference letter from a bank abroad or proof of rent and bills paid on time.
3Down payment funds coming from abroad need a clear paper trail showing where the money came from.
4Federal rules restrict some non-Canadians from buying residential property. Your broker will confirm whether they apply to you.
Get ready
What lenders will ask you for
Passport and your permanent resident card or work permit
A job offer or employment letter in Canada, and recent pay stubs
Proof of down payment, including transfers from abroad
A reference letter from your bank in your home country, if you have one
Proof of on-time rent and utility payments in Canada
Your options
Which kind of lender fits you
Option 1
Newcomer program (A lender)
For permanent residents and many work-permit holders, sometimes with 5 to 10 percent down.
Option 2
Non-resident program
For Canadians and permanent residents living abroad; usually needs a larger down payment.
Option 3
Co-borrower or guarantor
A family member in Canada can strengthen the application.
Avoid these
Common mistakes
!Moving down payment money in many small transfers with no clear record.
!Opening several credit cards at once to "build credit" quickly.
!Signing a purchase agreement before confirming you are allowed to buy.
!Letting your work permit get close to expiry during the process.
Take action
Your first steps
1Open a Canadian bank account and one credit card, and pay it in full each month.
2Keep records of every transfer of money into Canada.
3Ask your bank at home for a reference letter.
4Check your permit expiry date.
5Start the intake so a broker can check which programs fit you.
The intake
What your application will ask
Your online application goes one topic at a time and saves every answer and document as you go, so you can stop and come back. It never runs a credit check, and a licensed mortgage professional reviews it and follows up.
For newcomers & non-residents borrowers
When did you arrive in Canada, and what is your status (permanent resident, work permit, other)? If a permit, when does it expire?
How long is your Canadian credit history?
Do you have income or assets outside Canada, including your down payment?
Plus the basics everyone answers 13
Your full name, email, mobile number and the best time to call.
The city you live in, and whether you are a Canadian citizen, permanent resident, or other status.
Are you applying alone or with someone else? If with someone, their name and how you are related.
Your goal: buy, refinance, renew, take out equity, or consolidate debt?
The property type (house, condo, multi-unit) and the city it is in.
Will you live in it, rent it out, or both?
The purchase price or estimated value, and your target closing or renewal date.
Your down payment or available equity, and where it comes from (savings, RRSP/FHSA, a gift, sale of another property).
Your approximate yearly household income before tax.
Your monthly debt payments: car loans, credit cards, lines of credit, student loans, support payments.
Your own estimate of your credit score: excellent, good, fair, poor, or not sure.
In the last 7 years, any bankruptcy, consumer proposal, collections, or missed mortgage payments?
May the broker contact you? (A credit check is only ever run later, with your separate written consent.)
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Answers
Questions people ask
Can a newcomer get a mortgage in Canada?
Yes. Many lenders have newcomer programs for permanent residents and work-permit holders, often with flexible credit rules.
Do I need Canadian credit history?
It helps, but some programs accept international credit references or proof of on-time rent and bills instead.
Can I use money from abroad for my down payment?
Yes, if you can show where it came from and how it was transferred.
Can non-residents buy property in Ontario?
Federal rules limit some purchases by non-Canadians, and Ontario charges an extra tax on some foreign buyers. Your broker and lawyer will confirm what applies.
Does starting the intake affect my credit?
No. It is only questions. A credit check comes later, with your permission.
General information, not mortgage, legal or tax advice. Lender rules change and every application is reviewed on its own facts. Your application and documents are stored privately and go only to a licensed mortgage professional at Top Mortgages Inc; they are never sold, and no credit check is run without your separate written consent.