Securing a new to Canada mortgage in Ontario is entirely possible soon after you arrive, whether you hold permanent residency or a valid work permit. Plenty of lenders have newcomer or New To Canada programs, and as a broker I can put them side by side for you instead of leaving you with one bank’s rulebook.
I get this question a lot from people who’ve just landed in London and are tired of paying rent. So I’ll go through how it works and what I’ll ask you for.
How lenders look at newcomers
Lenders want to know your status in Canada and how long you’ve been working here.
If you’re a permanent resident, most new to Canada programs were built with you in mind. On a work permit, there are still options; the lender will look hard at your job and at how many months are left on the permit. New citizens are treated like any other Canadian buyer, and a short Canadian credit history can be addressed by a Mortgage Broker who’s experienced with new to Canada mortgages.
Many lenders and mortgage default insurers have programs for people who arrived in the last few years. Those details change, so I check what’s available when we talk.
If you aren’t a permanent resident or citizen yet, the federal foreign-buyer ban limits non-Canadians buying homes (with some exceptions). Budget 2026 proposes extending it to January 1, 2029, with an exemption for new homes. Ontario charges a Non-Resident Speculation Tax on foreign nationals. Please talk to a real estate lawyer before you make an offer.
Your down payment
Newcomers have the same minimum as everyone else: 5% of the first $500,000 and 10% of the part above that, for homes under $1.5 million. Put down less than 20% and you’ll need mortgage default insurance (insurance that protects the lender, and it’s usually added to your mortgage).
A few habits make this part go smoother:
- Keep the money in a Canadian bank account. Lenders usually want to see about 90 days of history.
- If the funds are coming from overseas, save the statements from the account abroad and the transfer records.
- A gift from family can often be used, with a signed gift letter saying it doesn’t have to be paid back.
- Budget for closing costs on top of the down payment. Legal fees and land transfer tax are the big ones and can range from 1.5-4.5% of the purchase price.
Building Canadian credit
This is where a lot of newcomers get stuck. It’s very fixable, though.
Your score from back home usually doesn’t come with you, so start building one here in your first month. Get a Canadian credit card (a secured card, which is backed by a deposit, is fine) and pay it off in full every month, but not before the statement date (the credit scoring agencies want to see that you are actually using the card). Keep the balance well under the limit. Put your phone plan in your own name and pay it on time.
Been in Canada less than 2 years? Some lenders will look at other proof that you pay your bills instead of a Canadian credit report, like proof of rent or utility payments, bank statements from back home, or an international credit report. After about 2 years here, most borrowers use their Canadian credit report. Bring whatever you have and I’ll tell you which lenders will actually use it. Some newcomers also add a family member to the application; I explain how co-signing a mortgage works in Canada in a separate post.
Proving your income
Most lenders want to see a permanent job in Canada, and some want you past probation. Others relax that if you’re working in the same field you were in before you moved.
Have these ready:
- A letter of employment with your title, salary, start date, and whether you’re permanent or on probation
- Your two most recent pay stubs
- Your PR card or work permit, and your passport
- Bank statements showing the down payment
Self-employed in your first couple of years here? It’s harder. I’ve still seen it work, so send me what you have and I’ll look.
Once those papers are together, the next step is a pre-approval. My post on how a pre-approval gives you an edge shows what it does for your offer.
First-time buyer programs
If this is your first home anywhere in the world, you may qualify for the First Home Savings Account (FHSA), which lets you save toward a first home tax-free. The RRSP Home Buyers’ Plan lets you take up to $60,000 out of your RRSPs for a first home. Ontario also refunds up to $4,000 of land transfer tax for eligible first-time buyers; you need to be a citizen or permanent resident, or become one within 18 months of buying.
The FHSA and the Home Buyers’ Plan both need savings already sitting in those accounts, so they tend to help more once you’ve been here a while. I go through each one on my page for first-time home buyers in Ontario.
Why Use a Broker for a New to Canada Mortgage in Ontario
Every bank writes its own newcomer rules. One wants a year on the job. Another cares more about how big your down payment is. Ask only your own bank and you only hear one answer.
I work with 90+ lenders and send one application to the ones that fit you. I also explain each step in plain words, because buying here can work very differently from buying back home. Ask me anything; I’d rather answer ten questions than have you guess.
What I won’t do is promise an approval or a rate before I’ve seen your file. Each lender decides for itself, and I’ll tell you honestly what’s realistic.
There’s more on how I help newcomers to Canada get a mortgage.
Common questions
How long do I need to be in Canada to get a mortgage?
There’s no single rule. Some programs work for people who arrived recently, as long as you have a job and a down payment, and others want more time here. Send me your arrival date and job details and I’ll tell you where you stand.
Can I get a mortgage on a work permit?
Often, yes. The lender will look at your job, the time left on your permit and your down payment.
Do I need a Canadian credit score?
It helps a lot. If you’ve been here less than 2 years, some lenders will accept proof of rent or utility payments, bank statements from back home, or an international credit report instead. After about 2 years, most people use their Canadian credit.
Can I use money from outside Canada for my down payment?
Usually. Move it into a Canadian account early and keep the records showing where it came from.
Planning your first home in London
Securing a new to Canada mortgage in Ontario gets much easier with clear guidance, and I help newcomers across London prepare a solid file. Book a 15-minute call and we’ll go through your file together. No pressure, and no cost to talk.
Mike Boniferro, Mortgage Broker, FSRA Licence #M18001301 | Dominion Lending Centres Elite Mortgage Group, FSRA #13669 | Independently Owned and Operated
