New to Canada Mortgage Programs 2025: A Complete Guide for New Residents
If you're a newcomer to Canada and are looking to purchase your first home, navigating the mortgage landscape can seem overwhelming. Fortunately, several programs and initiatives are specifically designed to help immigrants secure financing for their new homes.
In 2025, these programs continue to offer valuable opportunities for newcomers, whether you're just starting to build your credit in Canada or you're looking for lower down payment options.
This guide will walk you through the key mortgage programs available for newcomers, how to qualify for them, and what to expect in the Canadian home-buying process.
Understanding the Canadian Mortgage Landscape for Newcomers
In Canada, mortgage programs for newcomers are designed to make homeownership more accessible, even if you don't have a long credit history or substantial financial backing in the country.
These programs are backed by both financial institutions and government initiatives.
With affordable down payments, flexible eligibility requirements, and the help of mortgage insurance, newcomers can begin building equity in a home, contributing to their new life in Canada.
Key Mortgage Programs for Newcomers to Canada in 2025
1. The Newcomer Mortgage Program
The Newcomer Mortgage Program is an essential offering from several Canadian banks and financial institutions, including RBC, Scotiabank, and TD Bank. These programs are designed specifically for immigrants who have been in Canada for a short time, usually less than five years, and have limited or no Canadian credit history.
Eligibility:
Newcomers who have been in Canada for fewer than five years.
Applicants can still be eligible with minimal Canadian credit history, provided they have strong financials or international credit history.
Typically, a down payment of at least 5% is required.
Key Benefits:
Lower down payments: As little as 5% of the home price may be required.
Flexible credit options: Newcomers without a Canadian credit history can often use international credit reports or alternative documents to demonstrate creditworthiness.
Competitive interest rates: These mortgages often come with rates similar to those offered to long-term Canadian residents.
Many of these programs also offer tools to help newcomers establish their Canadian credit profile, making it easier for them to secure future loans and credit in Canada.
2. The Canada Mortgage and Housing Corporation (CMHC) Newcomer Program
The CMHC is a Crown corporation that provides mortgage loan insurance to lenders. For newcomers, CMHC offers a program that can help you qualify for a mortgage with a smaller down payment and reduced risk for lenders. This program is particularly beneficial for those with limited credit history or who have recently established permanent residency in Canada.
Eligibility:
Newcomers who have been in Canada for fewer than five years.
Applicants must provide proof of income, employment, and immigration status.
Must meet the CMHC’s minimum down payment requirement.
Key Benefits:
Low down payment: For newcomers, a minimum down payment of 5% can be sufficient to secure a mortgage, making homeownership more affordable.
Mortgage insurance: CMHC provides mortgage insurance that reduces risk for lenders, which can make it easier for newcomers to get approved.
Flexible requirements: The CMHC allows newcomers to use alternative documents to prove income and creditworthiness, such as foreign employment records or an international credit report.
CMHC’s mortgage insurance can also be used for homes in the $1 million price range or higher, as long as the down payment is at least 20%.
3. First-Time Home Buyer Incentive (FTHBI)
The First-Time Home Buyer Incentive is a federal initiative designed to help first-time homebuyers, including newcomers, reduce their monthly mortgage payments. While this program is not exclusive to newcomers, it offers financial assistance to help you get into your first home with a lower mortgage.
Eligibility:
Applicants must be first-time homebuyers, which includes newcomers who meet specific criteria.
The home price must be under a certain threshold—currently $500,000 for the FTHBI, although this can vary based on the area.
Applicants must meet a household income limit of $120,000.
Key Benefits:
Shared equity mortgage: The government offers a 5% or 10% shared equity mortgage to lower your monthly mortgage payments, depending on whether you’re buying an existing or new home.
Affordable payments: This incentive reduces the financial burden of purchasing your first home by lowering your mortgage payments without requiring additional down payment funds.
No interest or fees: The shared equity mortgage is interest-free for the duration of the loan. When you sell your home or pay off the mortgage, you repay the government based on the original percentage.
This program can be an excellent way for newcomers to ease into homeownership without taking on excessive financial strain.
4. Provincial Programs and Other Regional Incentives
While national programs are the most widely recognized, many provinces also offer specific incentives and programs for first-time homebuyers, including newcomers. For example:
Ontario Land Transfer Tax (LTT) Rebate: Ontario offers a rebate for first-time homebuyers to help with land transfer taxes. If you qualify, you can receive up to $4,000 to offset the costs of purchasing a home in Ontario.
British Columbia First-Time Home Buyers’ Program: This program provides a rebate on the provincial portion of the property transfer tax for homes priced under a certain threshold.
Quebec: Quebec offers the First-Time Home Buyer’s Tax Credit, which helps with the costs associated with purchasing your first home.
These provincial programs vary from year to year and may have specific eligibility requirements. It’s essential to research the programs available in the province where you plan to buy your home.
5. Private Lenders and Alternative Financing Options
In addition to traditional banks and government-backed programs, some private lenders offer specialized products tailored to newcomers who may not meet traditional mortgage criteria. These alternative lenders often offer more flexible terms and criteria, including acceptance of foreign credit reports, alternative income verification, and lower down payments.
Key Benefits:
Flexible lending terms: Some private lenders are more willing to accept applicants without a Canadian credit history or those who are self-employed or have non-traditional income sources.
Support for newcomers: Private lenders may offer additional support and financial advice to help newcomers get settled in Canada and better understand their options.
Speed of approval: Private lenders may be able to approve and fund loans more quickly than traditional institutions, which can be helpful if you’re looking to purchase a home sooner rather than later.
However, it’s important to remember that private lenders may charge higher interest rates than traditional banks, so you should carefully compare options before proceeding.
6. Building Credit as a Newcomer
One of the challenges newcomers face when applying for a mortgage in Canada is building a Canadian credit history. However, there are several strategies to establish credit in Canada:
Apply for a secured credit card: Many newcomers apply for a secured credit card to start building their Canadian credit. This card requires a deposit, which acts as your credit limit.
Get a credit report: If you have a credit history in your home country, you can request a copy of your international credit report to help prove your creditworthiness to Canadian lenders.
Make timely payments: Building a positive credit history requires consistent on-time payments. Make sure to pay your bills, credit cards, and any loans on time to improve your score.
Lenders will typically review your credit report, income, and down payment history when making decisions about your mortgage application.
Establishing a good credit history in Canada can significantly increase your chances of mortgage approval and access to better interest rates.
Get Professional Advice
Hello, I’m David Pipe. At WealthTrack, we can help you reach your financial goals — book a free 15-minute call with us today to find out how to get started.
Conclusion: Navigating Your Path to Homeownership in Canada
Securing a mortgage as a newcomer to Canada may seem challenging, but with the right knowledge and guidance, it’s very achievable.
The Canadian government, financial institutions, and provincial programs offer a variety of mortgage options designed to make homeownership more accessible for those who are new to the country.
In 2025, these programs are likely to continue evolving to meet the needs of newcomers, with more flexible terms, lower down payments, and additional resources available.
By taking advantage of these opportunities and preparing your finances and credit history, you can move one step closer to owning your own home in Canada.
Before applying for a mortgage, be sure to review all available programs, consult with a mortgage advisor, and consider your long-term financial goals to make the best decision for your future.
