Can New Immigrants Apply for A-Lender Mortgages?

Yes, new immigrants to Canada can apply for mortgages from A-lenders (traditional banks and major financial institutions). Many offer specialized Newcomer Programs to accommodate those without extensive local credit history or work experience. Below is an organized overview of the key aspects, based on the provided information.

Understanding Lender Policies for Newcomers

Many newcomers to Canada aspire to purchase a home and establish roots soon after arrival. However, concerns about lacking a local credit history, limited work experience, or even unemployment can make securing a mortgage seem daunting.

In reality, numerous A-lender institutions—such as traditional banks and major financial providers—offer specialized Newcomer Programs designed specifically for recent immigrants. Meeting the basic eligibility criteria can open the door to mortgage approval.

What Qualifies as a "Newcomer"?

From a lender's perspective, a "newcomer" is typically defined as someone who:

• Has been in Canada for no more than five years; and
• Has not yet established a comprehensive local credit history.

Common scenarios include:

• Permanent Residents (PRs)
• Individuals holding work permits (e.g., LMIA-supported or open work permits)
• International students with Post-Graduation Work Permits (PGWPs)

What Are the Down Payment Requirements?

The minimum down payment is 5% (applicable to the portion of the purchase price up to $500,000).

Note: Most lenders stipulate that the property value must not exceed $1,000,000 to qualify for the Newcomer Program.

What Documentation Do Newcomers Typically Need to Submit?

Lenders evaluate your repayment capacity based on a set of standard requirements, which may include:

• Recent pay stubs from the last three months, along with an employment verification letter (Letter of Employment).
• Canadian bank account statements (demonstrating the source of funds).
• International credit reports (e.g., from TransUnion or Equifax in regions like Hong Kong, the UK, or China).
• Valid identification documents (such as a PR card or work permit).
• If down payment funds are gifted by relatives, a formal Gift Letter is required.

Requirements may vary slightly by institution; an experienced mortgage broker can assist in organizing and optimizing your documentation for the best outcome.