Loan Types #Home Buying

New to Canada in the past five years? Getting a mortgage may be easier than you think!

New to Canada in the past five years? Getting a mortgage may be easier than you think!


If you’ve immigrated or relocated to Canada within the past five years, you’re definitely not alone. It’s estimated that up to 1 in five new mortgage holders across the country are newcomers, recent immigrants to Canada.

Of course, we think it’s a pretty fabulous country, so we want to help get you into a home as quickly as possible. At nesto, we have access to some great new to Canada mortgage options.

And here’s some more awesome news! You may even be eligible under a specialized New to Canada Program to purchase a property with as little as a 5% down payment.

Here’s how the numbers work. If the property value on the home you wish to buy is below $500,000, you can complete your purchase for just 5% down. If, however, you’re buying a more expensive home, you’ll be required to pay 5% down up to $500,000, with an additional 10% down payment on the portion of the home value above $500,000. Eligible properties cap out at $1 million.

Will I be approved for a mortgage?

As is the case when qualifying for any mortgage, as a newcomer under a New to Canada Program, there are a number of things we’ll have to review to ensure this mortgage product is the right solution for you.

When it comes to income and employment, for instance, you must have a minimum of three months full-time employment in Canada. Here’s a perk for newcomers who are being transferred under a corporate relocation program: you’re exempt from this rule, so you don’t even have to worry about proving a minimum employment level.

Depending on how much you intend to borrow for your mortgage in relation to the total cost of the property – your loan to value (LTV) – you must also provide specific documentation. Here’s the typical rundown of credit requirements and documentation you’ll need to show to ensure successful mortgage approval:

  1. All Loan to Value’s
    • Valid work permit OR verification of permanent residency
    • Income confirmation
    • Down payment confirmation
    • Purchase and Sale Agreement
  2. Borrowing 90.01-95% LTV (also known as minimum downpayment)
    • International credit report (Equifax or TransUnion) demonstrating a strong credit profile OR
    • Two alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months. The two alternative sources required can be but not limited to: Rental payment history confirmed via letter from landlord and bank statements plus one other alternative source (hydro/utilities, telephone, cable, cell phone and auto insurance) to be confirmed via letter from service provider or 12 months billing statements 
  3. Up to 90% LTV
    • Letter of reference from a recognized financial institution OR
    • Six months bank statements from primary account 

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Down payment details

The New to Canada program offers some flexibility when it comes to your down payment options. You may use traditional sources including personal savings, a non-repayable gift from an immediate family member(s) and proceeds from the sale of your property. 

If you’re borrowing 95% of your purchase price, it’s important to understand that the full down payment amount must come from your own resources. But, if you’re borrowing less than 95%, anything above the first 5% of the down payment may be gifted from an immediate family member or come in via a corporate subsidy.

Have questions about becoming a homeowner as a new Canadian? We’re here to help.

Click here to begin your nesto mortgage application today at your convenience.

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