First-Time Home Buyer Mortgages in Ontario
Down payment rules, closing costs, the stress test and the programs first-time buyers in Ontario actually qualify for.
See the first-time buyer guide →
Newcomers & New to Canada
Newcomer mortgages in Ontario. A short credit history is expected.
New to Canada and ready to stop renting? Your bank sees a thin credit file and says come back in two years. There are mortgage insurance programs built for exactly your situation. I'm a mortgage agent based in Halton Hills, and virtual calls work anywhere in Ontario.
Here's what the branch rarely explains. All three of Canada's mortgage default insurers, CMHC, Sagen and Canada Guaranty, run programs for newcomers. They exist because a short Canadian credit history isn't bad credit. It's just short.
Under CMHC's newcomer program, a lender can use other evidence that you pay your bills on time when your Canadian file is thin. Some lenders add their own limit on how recently you arrived. Some don't. Which lender reads your file decides the answer, and knowing which one fits is my job.
This is probably you if…
You're a permanent resident who landed in the last few years.
You're working here on a work permit and want to own, not rent.
Your Canadian credit file is a year or two old, or barely there.
Part of your down payment is still in an account back home.
You owned a home in another country and have no idea how it works here.
Your bank told you to come back once you've "built some credit."
Your status decides your options
Permanent residents and work permit holders are treated very differently, by lenders and by the tax rules. Here's the short version.
| Permanent resident | Work permit holder | |
|---|---|---|
| Minimum down payment (insured) | Same as any Canadian: 5% of the first $500,000, 10% of the part above that | 10% |
| Property you can finance | Home you live in, including 2 to 4 units | The home you'll live in |
| Federal foreign buyer ban | Doesn't apply to you | Applies, with an exemption if your permit has 183+ days left and you haven't bought another home here |
| Ontario's 25% non-resident speculation tax | Doesn't apply to you | Applies unless an exemption or rebate fits your situation |
| First-time buyer land transfer tax refund (up to $4,000) | Eligible if it's your first home anywhere | Only if you become a permanent resident or citizen within 18 months |
The federal ban on foreign buyers is scheduled to end on January 1, 2027. If you're on a work permit, ask me where it stands the week you call. The tax side always gets confirmed by your real estate lawyer on your specific purchase.
What lenders will ask you for
- Status documents. Your passport, plus your PR card or confirmation of permanent residence, or your work permit.
- Income. A job letter and recent pay stubs. Still on probation? Say so on the first call, because lenders handle it differently.
- Down payment history. Usually the last 90 days of statements. Money from abroad is fine. Lenders just want to see it arrive in a Canadian account and where it came from.
- Credit. Your Canadian credit report. If it's thin, a record of paying rent and bills on time helps.
- A gift letter, if family is helping with the down payment.
One bank has one newcomer policy
That's the whole problem. Your bank has a single rulebook for how long you've been here, how much credit history counts and whether probation is a dealbreaker. If you don't fit it, the answer is no, and the branch has nowhere else to send you.
I submit to lenders whose rules on all three are genuinely different. Same buyer, same down payment, different answer. On most mortgages the lender pays me when your mortgage closes. If a file is complex or private and carries a fee, you'll know upfront, in writing, before you sign.
Book a Free 30-Min CallHow it works
I'm based in Halton Hills and work with newcomers across Ontario by phone and video. Documents are uploaded securely, papers are e-signed, and a lawyer near you handles the closing.
- 01
A free 30-minute call
We look at your status, income, down payment and credit, and I tell you honestly what's possible today.
- 02
Pre-approval with the right lender
I match your file to the lender whose newcomer rules actually fit it, before you start shopping.
- 03
Offer, appraisal, lawyer, keys
You buy, the lender signs off, and your lawyer registers the mortgage on closing day.
Go deeper
Buying in Ontario for the first time? These cover the parts every buyer goes through.
From Offer to Approval: The Steps That Make or Break Your Mortgage
What happens between an accepted offer and a funded mortgage, and where deals usually go sideways.
Walk through the approval steps →Mortgage Broker vs Bank in Ontario: The Honest Comparison
What a bank can offer you, what a broker can, and when each one makes sense.
Compare a bank and a broker →Questions newcomers ask me
Can I get a mortgage in Ontario without Canadian credit history?
Often, yes. CMHC, Sagen and Canada Guaranty all run newcomer programs, and under CMHC's a lender can use other evidence of creditworthiness when your Canadian file is limited. Lenders apply these rules differently, which is why it pays to have a broker match you to the right one.
How much down payment do newcomers need?
Permanent residents can buy with the same minimum as any Canadian on an insured mortgage: 5% of the first $500,000 and 10% of the portion above that. Work permit holders generally need at least 10% on an insured mortgage. With 20% or more down, the mortgage doesn't need default insurance at all.
Can I buy a home in Ontario on a work permit?
Yes, if you meet the exemption in the federal foreign buyer ban: at least 183 days left on your work permit when you buy, and no other residential property purchased in Canada. The ban is scheduled to end on January 1, 2027. Ontario's 25% non-resident speculation tax can still apply, so have a real estate lawyer confirm the tax side before you write an offer.
Can I use money from outside Canada for my down payment?
Yes. Lenders want to see where the money came from and see it land in a Canadian account, usually with about 90 days of statements. Move it early. Funds that arrive the week before closing with no paper trail cause delays nobody needs.
Do I have to pay Ontario's 25% non-resident speculation tax?
Not if you're a permanent resident or a citizen. Foreign nationals generally pay it on top of land transfer tax, unless an exemption or rebate applies, for example certain spousal situations or becoming a permanent resident after you buy. Your real estate lawyer confirms which rules apply to your purchase.
You're based in Halton Hills. Can you handle my mortgage if I live elsewhere in Ontario?
Yes. I work with clients across all of Ontario. Virtual calls work great: we meet by phone or video, you upload documents securely and e-sign, and a lawyer near you handles the closing. The lenders don't need you to live near me.
How does a mortgage broker get paid?
On most mortgages, the lender pays the broker when the mortgage closes. Complex or private files can carry a fee, and if yours does, it's disclosed upfront in writing before you sign anything. The first 30-minute consultation is free.
General information only, not legal or tax advice. Rules referenced are current as of November 2026 and change from time to time.
New to Canada and ready to stop renting?
Book a free 30-minute consultation. Bring your status, your income and your savings, and I'll tell you honestly what's possible and which lender fits.