Everyone dreams of having their own house one day — a place they can call home, where they can finally put down roots, raise their family, and build a new life. Although moving to a new country is exciting, it can also be overwhelming and a little bit terrifying at times.
But when you’re new to Canada, figuring out how to actually buy a home can be confusing. Mortgages, down payments, credit scores, interest rates… it’s a lot. And it’s not always as simple as “find a house, get a loan, move in.”
But once you understand how the system works, especially the new immigrant mortgage program. It becomes more manageable.
Let’s break it down
What Factors Determine Your Chances of Getting a Mortgage?
A mortgage bridges that gap, letting you pay for your home over time, usually 20 to 30 years. At its core, a mortgage is just a loan that helps you buy a home. You borrow money from a bank, credit union, or lender, and they use the house itself as security.
When you’re looking into mortgages for immigrants, it’s important to understand that lenders aren’t just handing out money. They want to make sure you can reliably pay it back.
Here are the few things they’re going to factor in:
Income Stability
Banks want to see that you have a steady, reliable income. If you’re on a permanent, full-time contract—and you’ve passed your probation period—you’re already in a good position. If you’re self-employed or working contract jobs, lenders will often want to see at least two years of tax filings in Canada before they consider you for a mortgage.
Credit History
A strong credit history in Canada is crucial. It’s not just about having a credit card; it’s about using it responsibly and making timely payments to build a solid financial reputation.
Most lenders want to see:
- A credit score of at least 680 (higher is better)
- A history of paying bills on time
- Responsible use of credit (i.e., not maxing out your cards)
If you’re brand new and don’t have any credit yet, building it should be your top priority before thinking about a mortgage. Which is why new immigrant mortgage programs encourage you to start with small credit products like credit cards or small loans to build trust.
Down Payment Size
The bigger your down payment, the better. At minimum, you’ll usually need 5% to 20% of the home’s purchase price, depending on the property and your situation. But if you’re newer and don’t have a long Canadian history yet, a larger down payment can significantly improve your chances—and lower your mortgage insurance costs too.
Debt Load
Lenders also check how much debt you’re carrying compared to your income. It’s called your debt-to-income ratio, and if it’s too high, like a lot of credit cards, car loans, and personal loans, it could hurt your chances.
Step-by-Step: The Mortgage Process for New Immigrants
Once you’re ready, here’s a simple, clear breakdown of what you can expect from start to finish.
Step 1: Check Your Readiness
Before anything, be brutally honest with yourself:
- Do you have a stable job (preferably permanent, post-probation)?
- Some savings set aside (down payment + emergency fund)?
- A bit of credit history started (credit card, small loan)?
- A good idea of the expenses you’ll face beyond just the mortgage?
If not, it just means more time prepping.
Step 2: Talk to a Mortgage Broker
A mortgage broker will become your friend through this. Especially as a newcomer, brokers help you find lenders who understand your situation, explain the new immigrant mortgage program options available, and guide you through the maze without it feeling overwhelming.
Step 3: Get Pre-Approved
Pre-approval gives you an actual number you can afford, so you’re not house-hunting blindly. Here, lenders will look at your:
- Income (2+ years preferred, but some programs may work with less)
- Credit score
- Debts and financial obligations
- Proof of down payment
They’ll also check if you fit into specific options like mortgages for immigrants or even interest-free mortgages for immigrants (rare but can exist under special programs).
Step 4: Find Your Home and Make an Offer
With your pre-approval in hand, you can focus only on homes that realistically fit your budget. But always factor in extra costs: property taxes, insurance, repairs, and utilities. Once you’ve found the one. Time to put in an offer, usually with the help of a real estate agent.
Step 5: Finalize Your Mortgage
Once your offer is accepted, you’ll go back to your mortgage broker and finalize everything. This includes confirming details with the lender, signing agreements, and making sure you still qualify at closing. Then you’ll pay your final costs (closing costs, land transfer taxes, etc.), sign the final documents, and get the keys to your new home.
It might seem like a lot, but if you break it down, especially with the right guidance, it’s 100% doable.
Programs and Mortgage Options to Help You as a New Immigrant
There are programs designed to make mortgages for newcomers easier, making their dream to buy a home a reality.
Here’s a quick guide to what’s out there:
New Immigrant Mortgage Programs by Banks
Most major Canadian banks offer a new immigrant mortgage program that helps ease some of the stricter requirements. Under these, you might get a mortgage even if you have limited Canadian credit history, as long as you can show:
- Proof of stable employment (usually permanent, full-time)
- Proof of down payment (often at least 5%–20%, depending on the lender)
- Some form of international credit history or financial references
Mortgage Options Available for New Immigrants
Some lenders offer special products under “New to Canada” programs, where they’ll look at your rent payments, utility bills, or overseas banking history instead of just a Canadian credit score.
If you’re wondering about interest-free mortgages for immigrants, they do exist but are rare. Some specialized programs through religious or community-based organizations (like Islamic financing options) offer versions of this model where no interest is charged, but fees are applied differently. Always read the fine print carefully!
New to Canada Mortgage Program Requirements
In general, expect requirements like
- Being a permanent resident or having a valid work permit
- Having lived in Canada for less than 5 years
- Minimum income and down payment levels
- Basic credit-building efforts (even if just 6–12 months)
Why Working With a Mortgage Centre Makes All the Difference
Now, technically you could go bank to bank, website to website, filling out dozens of forms trying to compare your options… but why make life harder?
Here’s what we bring to the table:
- We know the programs: We Know what’s actually available and who’s offering the best deals.
- We save you time and money: Instead of applying everywhere (which can actually hurt your credit score!), we apply smartly and negotiate rates for you.
- We help you qualify. If your paperwork or situation needs a little extra explanation, we know how to position it for lenders to understand.
- We protect your interests: We aren’t tied to just one bank, so our loyalty is to you—not a specific lender.
At The Mortgage Centre we understand the unique challenges newcomers face, and they know exactly how to guide you through mortgage options available for new immigrants.
Your dream of owning a home in Ontario is absolutely within reach. Take a deep breath, plan carefully, and when you’re ready —you’ll walk through the door of a house that’s truly yours.
