New to Canada Mortgages
Empowering New Canadians on the Path to Homeownership
Canada’s welcoming approach to immigration has created a diverse and vibrant population, with over 8.3 million immigrants and permanent residents contributing to its growth and economy. For newcomers, purchasing a home is not just a financial investment but a major step toward building a secure and prosperous future in their new country.
At Better Mortgages, we’re committed to helping new Canadians understand and access the mortgage programs designed specifically for them.
What Are New to Canada Mortgage Programs?
These specialized programs are tailored to address the unique needs of immigrants, including limited credit history or unfamiliarity with the Canadian financial system. Offered by default mortgage insurers and financial institutions, these programs simplify the home-buying process and make mortgages more accessible to newcomers.
Key Features of New to Canada Mortgage Programs
| Feature | Program Details |
|
Down Payment Options | Minimum 5% down payment for homes up to $500,000; 10% required for the portion above $500,000 |
| Credit History Flexibility | Accept alternative credit sources such as rental payment history, utility bills, or international credit reports |
| Employment Verification | Proof of income (employment letters, pay stubs) or self-employment documentation required |
| Eligible Properties | Owner-occupied properties (single-family homes, condos, townhomes, etc.) |
| Loan-to-Value (LTV) Ratio | Up to 95% financing for qualified applicants with permanent residency or valid work permits |
| Rate Protection | Interest rate holds of up to 120 days while you shop for your home. |
Major Banks Offering New to Canada Programs
Mortgage brokers have access to specialized programs from several of Canada’s largest banks, designed to help newcomers navigate the home-buying process with ease.
Scotiabank – StartRight® Program
Overview:
Scotiabank’s StartRight® program is designed for newcomers with limited or no Canadian credit history.
Key Features
• Flexible down payment options starting at 5%.
• Option to use international credit history or alternative credit sources.
• Competitive interest rates and personalized mortgage advice.
National Bank – Newcomers Program
Overview:
National Bank offers a comprehensive Newcomers Program tailored to those new to Canada, with flexible requirements to support homeownership.
Key Features
• Up to 95% financing for eligible borrowers.
• Acceptance of alternative credit history.
• Personalized support from bilingual mortgage advisors.
BMO – NewStart® Program
Overview:
BMO’s NewStart® program provides tailored mortgage solutions for newcomers to Canada.
Key Features
• Low down payment options for homes up to $1 million.
• Competitive interest rates with flexible repayment terms.
• Access to a team of mortgage specialists familiar with newcomer needs.
TD Bank – New to Canada Mortgage Program
Overview:
TD Bank offers a program designed to simplify the mortgage process for newcomers.
Key Features
• Down payments as low as 5% for eligible applicants.
• Rate holds of up to 120 days.
• Support for alternative credit verification, such as rental or utility payment history.
Steps to Secure a Mortgage as a Newcomer
Build Credit
• Open a Canadian bank account and apply for a secured credit card to establish your credit history.
Save for a Down Payment
• Aim to save at least 5% of your property’s purchase price, and ensure the funds are readily available.
Gather Required Documents
• Identification (passport, permanent resident card, etc.).
• Proof of income (pay stubs, employment letter, etc.).
• Statements showing savings or other sources for the down payment.
Work with a Mortgage Agent or Broker
• A broker provides access to multiple lenders, helping you find the best rates and terms suited to your needs.
Why Homeownership Matters for New Canadians
Homeownership is more than a financial investment; it’s a step toward stability, belonging, and building a legacy in Canada. With over 400,000 new immigrants arriving each year, the demand for inclusive mortgage programs underscores the importance of empowering newcomers with the tools they need to succeed.
"The ache for home lives in all of us." – Maya Angelou
At Better Mortgages, we’re here to help make that ache a reality. Our experienced team is dedicated to guiding newcomers through the mortgage process with clarity and care.
Choose a Better Mortgages representative to work with or contact us today to start your journey to homeownership.
Let Better Mortgages help you turn your Canadian dream into reality.