Buying your first home in a new country means learning a new set of rules at the same time as you build a financial history from scratch. This checklist covers what to sort out before you apply, so the process holds fewer surprises.
1. Confirm that you are allowed to buy
Canada currently prohibits most non-Canadians from buying residential property. In February 2024, the Department of Finance announced the ban would be extended to January 1, 2027, and said people who are not Canadian citizens or permanent residents would continue to be barred.
Permanent residents are not covered by the ban. Some temporary residents, including certain work permit holders, may qualify for an exemption under the law, but the conditions are specific. If you are not a permanent resident, get legal advice on whether an exemption applies to you before you start house hunting or pay any deposit. The ban is scheduled to end on January 1, 2027, so check whether the rules have changed when you are ready to buy.
2. Understand the newcomer insurance options
If your down payment is less than 20%, your mortgage will generally need mortgage loan insurance. CMHC Newcomers is CMHC's program aimed at people new to Canada. According to CMHC:
- You need permanent resident status or legal authorization to work in Canada, such as a work permit.
- There is no minimum period of residency.
- Non-permanent residents must not be restricted from buying under the foreign-buyer law. Only borrowers who are exempt can be considered.
- For a home with one or two units, the minimum down payment is 5% of the first $500,000 of the lending value and 10% of the rest.
- The purchase price must be below $1,500,000 for a homeowner loan.
Conditions apply and can change, so confirm the current rules with your lender or broker before you rely on them.
3. Start building Canadian credit early
CMHC requires at least one borrower or guarantor to have a credit score of at least 600. If your Canadian history is thin, CMHC may consider an international credit report, a reference letter from your financial institution at home, or other ways of showing you have managed credit well.
Practical steps that help:
- Open a Canadian bank account and a credit card soon after you arrive, and pay the full balance on time.
- Keep balances well below your limits.
- Request a copy of your Canadian credit report so you know what lenders will see.
4. Gather your documents
Lenders and brokers commonly ask for:
- government-issued photo ID and proof of your status in Canada
- a job letter showing your role, start date, salary and whether you are on probation
- recent pay stubs
- bank statements showing where your down payment is coming from
- any international credit report or bank reference letter you plan to use
Common mistakes to avoid
- Moving money at the last minute. Lenders want to see where your down payment came from. Transfer savings from abroad early and keep the paper trail.
- Taking on new debt before closing. A car loan or new credit card can change what you qualify for.
- Forgetting closing costs. Legal fees, land transfer taxes or registration fees (depending on the province), inspections and moving costs come on top of the down payment.
- Using a down payment loan. CMHC's non-traditional down payment option is not available to non-permanent residents.
Where to go next
Start with what you can afford. The mortgage affordability calculator and the down payment calculator will give you a realistic range. When you are ready to talk to someone, you can find mortgage brokers who work with newcomers.
Sources
- Canada Mortgage and Housing Corporation, CMHC Newcomers. Accessed 2026-10-14.
- Department of Finance Canada, Government announces two-year extension to ban on foreign ownership of Canadian housing, 2024-02-04. Accessed 2026-10-14.
This article is general information for Canadian consumers, not financial, legal or tax advice. Rules, rates and programs change and can differ by province and by lender. Confirm the details that apply to you with a licensed professional before you act.
