New-to-Canada Mortgages

Posted on 27 June, 2019

New to Canada? Innovative Mortgage Solutions welcomes you! If you’re new to the country, qualifying for a mortgage may look a little different than a traditional mortgage application. However, if you’ve relocated to Canada within the past five years, you are still able to get a mortgage for as little as 5 percent down.


Borrower Qualification:

Income and Employment

All applications are subject to standard income and employment verification requirements. This may include looking at your total gross income for the household, as well as your employment type (whether you are full-time, part-time, seasonal, etc.). Remember, you must have:

  • A minimum of 3 months full-time employment in Canada. If you were transferred under a corporate relocation program, you are exempt from this requirement.
  • A valid working permit or landed immigrant status

Credit Verification

Credit verification is dependent on the funds you have available for a down payment. Additionally, if you are from the United States, your Mortgage Broker may be able to use your US credit bureau as the Canadian equivalent in lieu of the below requirements.

Down Payment (5% up to 9.99%) Down Payment (10% and up)
  • International Credit Report with strong credit history

OR

  • Timely rental payment history for 12 months in Canada; and
  • One additional alternative source, such as 12 months of utilities, cell phone or auto insurance payments in Canada
  • A letter of reference from a recognized financial institution

OR

  • 6 months bank statements from primary account

Down Payment

If you are putting down 5 percent on the property, that 5 percent must come from your own resources.

If you are putting more than 5 percent down (up to 19.99%), the additional amount can be gifted from immediate family. Typical down payment sources include:

  • Personal savings
  • Proceeds from the sale of your property

If you are putting down 20 percent, it must come from your own resources; gifted down payments or secondary financing is not acceptable. The funds must also be deposited into a Canadian account for a minimum of 30 days before they are able to be utilized for your down payment.


Debt Service Ratios

Your mortgage application will be subject to traditional debt service ratio requirements (you can read more about these ratios in our recent blog post). Please remember:

  • Any debts held outside of the country are included in these calculations.
  • Rental income outside of Canada is excluded.

If you’re new to Canada and you have any questions about getting a mortgage, please contact our office at 780.416.1085 or send us an email at


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