available mortgage options for newcomers

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What are the available mortgage options for newcomers?

If you are a new immigrant in Canada, you will need to show that you have been working for two years and if you can afford to put down 20 percent of the purchase price. You may qualify for a “conventional” mortgage . Meaning that you will not be required to purchase Mortgage Default Insurance.


If you have a down payment (25 percent or more) but without two years’ employment history, you may still qualify for a mortgage but will need to answer questions about your financial history and your permanent residency status.

  • Must have immigrated to Canada within the past 24 months
  • Must have landed immigrant status
  • Must have a minimum of three months’ full time employment in Canada
  • All debts outside of Canada must be included in determining how much you can afford
  • Require a letter of reference from a recognized financial institution


If you don’t have any money available for a down payment, you may still qualify for a mortgage as long as you have a steady income and good credit rating. Depending on the lending institutions, you may only need 1.5 percent of the purchase price to cover the initial deposit and closing costs.

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Real Estate How To. By various authors, expert in Real Estate Industry of Canada.