Buying a Home in Canada With No Credit History: Newcomer Mortgages (2026)
Newcomer programs let buyers in Canada under five years qualify with 5% down and no Canadian credit score. The documents lenders accept and income proof needed.
Newcomer programs at CMHC, Sagen and Canada Guaranty let people who have been in Canada under five years buy with as little as 5% down (10% for some work-permit holders) without a Canadian credit score, substituting 12 months of documented rent, utility and phone payments, or an international credit report. You still need to prove income (usually three months of Canadian employment, with probation complete) and meet the same stress test and debt ratios as anyone else. Permanent residents are exempt from the federal foreign-buyer ban; temporary residents qualify for an exemption only under specific work-permit conditions.
Figures come from the CostToClose guided buying flow.
Who the programs cover
| Insurer program | Eligible | Minimum down | Credit substitute |
|---|---|---|---|
| CMHC Newcomers to Canada | PRs and work-permit holders arrived within 5 years | 5% (PR), 10% (work permit) on the first $500,000; standard tiers above | Foreign credit report, or 12 months of rent + one other regular payment |
| Sagen New to Canada | Same | 5% / 10% | Same |
| Canada Guaranty Maple Leaf Advantage | Same | 5% / 10% | Same |
Sources: CMHC, Sagen, Canada Guaranty program guides. Checked 14 September 2026. All cap the price at $1.5 million (insured limit) and require owner occupancy.
What replaces a credit score
- International credit report from your country of origin, where available (Equifax and Experian operate in many).
- Alternative credit: 12 months of on-time rent (letter from landlord plus bank statements or cancelled cheques) and 12 months of one or two other regular payments, such as utilities, phone, insurance, or daycare.
- A Canadian secured credit card started on arrival builds a score within 6 to 12 months; it is not required for the programs but helps with lenders outside them.
If you already have Canadian credit history and just want to strengthen a low score rather than build one from zero, see our guide to credit score thresholds before a mortgage application.
Income requirements
Three months of full-time Canadian employment with probation complete is the common minimum; some lenders accept a signed offer with a start date for professionals. Self-employed newcomers face the two-year requirement like everyone else. Foreign income does not count except for specific relocation programs. Debt ratios and the stress test are unchanged: contract rate plus 2%, 39% GDS, 44% TDS.
The foreign-buyer ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act runs to 1 January 2027. Permanent residents are Canadians for its purposes and are not affected. Temporary residents are exempt only if they hold a valid work permit with at least 183 days remaining and have not bought another residential property while the ban is in force (the student and refugee exemptions have their own tests). International students on study permits alone generally cannot buy. The ban applies in census metropolitan areas and census agglomerations (most cities), not in rural areas.
Worked example from the calculator
Couple arrived 14 months ago as permanent residents, combined Canadian income $135,000, no Canadian credit, 12 months of rent at $2,400 and utilities documented, buying a $620,000 townhouse in Calgary:
| Item | Amount |
|---|---|
| Minimum down payment (5% of $500,000 + 10% of $120,000) | $37,000 |
| Mortgage before insurance | $583,000 |
| CMHC premium (4.00%) | $23,320, added to mortgage |
| PST on premium | $0 (Alberta) |
| Stress-test payment at 6.49% | $4,058 |
| Income needed at 39% GDS (tax $340, heat $220) | ≈ $142,100 — slightly short |
| Adjustment | 10% down ($62,000): premium 3.10%, income needed ≈ $135,700 — approved |
Documents to prepare
Permanent resident card or work permit; passport; three months of pay stubs and a letter of employment; 90 days of bank statements showing the down payment (foreign funds must show a transfer trail); 12 months of rent proof and utility bills; international credit report if available; proof of any foreign assets being used; a Canadian bank account.
Frequently asked questions
Can a new immigrant get a mortgage in Canada with no credit history?
Yes, through the insurers' newcomer programs, using an international credit report or 12 months of rent and utility payments as alternative credit, with 5% to 10% down.
Can work-permit holders buy a house in Canada?
Yes, if the permit has at least 183 days left and they have not bought another property during the foreign-buyer ban. Insured mortgages require 10% down for most permit holders.
Does the foreign-buyer ban apply to permanent residents?
No. Permanent residents can buy anywhere in Canada.
How long do I need to be employed in Canada to get a mortgage?
Typically three months full-time with probation complete; some lenders accept a signed offer for professionals.
Can I use foreign income to qualify?
Generally no. Lenders use Canadian employment income; some relocation programs are the exception.
Sources
- CMHC, Newcomers to Canada program; Sagen, New to Canada; Canada Guaranty, Maple Leaf Advantage — checked 14 Sept 2026
- CMHC, Prohibition on the Purchase of Residential Property by Non-Canadians Act — exemptions for temporary residents; extension to 1 January 2027 — checked 14 Sept 2026
- Office of the Superintendent of Financial Institutions, Guideline B-20 — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown, and it is not legal, tax, or mortgage advice. Rules and rates change, so confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.