If you’ve recently immigrated or relocated to Canada, homeownership might be closer than you think. The New to Canada Mortgage Program helps newcomers purchase a home with as little as 5% down, even without an established Canadian credit history.
This program is specifically designed to make homeownership more accessible to those who have been in Canada for less than 5 years and are ready to put down roots.
👉 Apply now with The Local Broker
What Kind of Property Can You Buy?
You can use this program to purchase a home with up to 4 units, as long as one unit is owner-occupied. Eligible properties include:
- New builds (with appropriate home warranty)
- Resale homes
- Marketable properties in areas with ongoing resale demand
If you’re purchasing a 3- or 4-unit property, it must meet additional requirements like municipal zoning and having fully self-contained units.
How Much Can You Borrow?
The loan-to-value (LTV) and down payment depend on the property value:
- 1–2 units: Up to 95% LTV
- 3–4 units: Up to 90% LTV
Down payment structure for homes:
- Up to $500,000: 5% down
- $500,000–$1,499,999: 5% down on first $500K, then 10% on the rest
- Over $1.5M: Not eligible under this program
What About Employment and Credit?
To qualify, you must verify your income and employment like any other mortgage applicant. If you don’t yet have Canadian credit history, other options can be used:
- International credit bureau
- 12 months of bank or billing statements (rent, phone, utilities, etc.)
- A letter of reference from a recognized financial institution
- For 90% LTV or less, 6 months of bank statements
Who Can Apply?
To qualify, you must:
- Have moved to Canada within the last 60 months
- Hold a valid work permit or permanent residency
- Be eligible to buy property under Canadian law
- Include any foreign debts in your application (but not foreign rental income)
Note: Guarantors and non-residing co-borrowers are not permitted.
Amortization and Mortgage Terms
- Terms available: fixed, variable, capped variable, or adjustable rate
- Amortization: up to 30 years (with certain conditions)
- Interest rate qualification: the greater of 5.25% or your rate + 2%
Down Payment Sources
You can use:
- Personal savings or RRSP
- A non-repayable gift from a family member
- Sweat equity (value from labour put into improving the home)
- Equity from a previous home sale
If you’re a newcomer and dreaming of buying your first home in Canada, this program can help you take that step—even with limited credit history and a modest down payment.
👉 Start your application now and connect with a local mortgage expert who understands your unique situation.
