New to Canada and non-resident mortgages

Welcome to Canada! If you’re like most Canadian immigrants, you’ll want to purchase your own home at some time in the future. The good news is, that even as a recent arrival (or non-resident), you can still qualify for very competitive mortgage rates.

Let’s take a look at how financing works for people living in Canada on work visas, employed non-landed immigrants and non-working new immigrants who have applied for, or received landed immigrant status.

Basic Canadian mortgage rules

Before continuing, keep in mind that unless you have been transferred to Canada by your company, you will usually need to have been working in Canada for at least 3 months to qualify for a mortgage.

Lenders will also want to see your credit history. We recommend applying for an International credit report from Equifax or Transunion.

Establishing Canadian credit history

A great way to establish Canadian credit history is to apply for a credit card. If traditional providers won’t offer you one, you may wish to apply for a secure credit card. These are credit cards where you pay the creditor a deposit that you will get back after proving a successful track record of repayment.

Some lenders may also consider signed letters from a landlord indicating timely rent payments, or utility bills showing no late payments for at least a year.

A Capital 360 Mortgage Agent can help you build your credit history in Canada.

Qualifying for a mortgage with a work visa

Even if you are in Canada on a work visa, you can qualify for 95% financing on your first home. This is provided you have an excellent international credit report or can provide proof of timely payment of two other sources of credit, like a phone or hydro bill.

Getting a mortgage as an employed landed immigrant to Canada

If you have been employed for at least three months, you can qualify for up to 90% financing on your first home. Lenders will usually only allow this for single-unit primary residences – no refinances or rental units are permitted.

Getting a mortgage as a not-yet-employed, non-landed immigrant to Canada

Even if this describes your situation, you can still qualify for up to 65-75% financing on your first home. You will be asked to provide proof that you have liquid assets that can cover your mortgage payments, including applicable property taxes, for a minimum of six months.