Buying a Home as a Newcomer: Newcomer Mortgage Programs in Canada

An introduction to buying property in Canada as a new immigrant, including newcomer mortgage programs from major banks that do not require a lengthy Canadian credit history, and a city-by-city price snapshot.

Summary

Buying a home in Canada as a newcomer is possible even without a long Canadian credit history. Major banks offer specialized newcomer mortgage programs. However, affordability varies dramatically by city: Calgary averages CAD $642,840, Toronto $1.07M, and Vancouver $1.2M (2025 averages).

Newcomer Mortgage Programs

  • CIBC Newcomer Mortgage: Accepts non-Canadian credit history, allows purchase within the first 3 years of arrival. Minimum 5–10% down payment depending on price.
  • Scotiabank StartRight Mortgage: Designed for newcomers with less than 2 years of credit history in Canada.
  • RBC Newcomer Mortgage: Similar flexibility, combined with RBC newcomer banking products.
  • CMHC Newcomer Program: Insured mortgages for newcomers with minimum 5% down payment on properties under $500K.

Down Payment and CMHC Insurance

  • Minimum 5% down for homes under $500K
  • Minimum 10% for the portion above $500K up to $999,999
  • Minimum 20% to avoid CMHC mortgage default insurance
  • CMHC insurance premiums: 2.80–4.00% of the mortgage amount, typically added to the mortgage

NRI Property Note

As of January 2023, Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act (the 'foreign buyer ban') restricts non-permanent residents and non-citizens from purchasing residential property in certain urban areas. PRs and citizens are exempt. Verify your eligibility based on your immigration status before making an offer.

Costs Beyond the Purchase Price

  • Land Transfer Tax: Province-specific (Ontario charges 0.5%–2.5% of purchase price)
  • Legal fees: CAD $1,500–$3,000
  • Home inspection: CAD $400–$600
  • Property taxes: Annual, varies by municipality
  • Condo maintenance fees: If applicable, budget CAD $400–$1,200/month

Common Mistakes Indians Make

  • Underestimating closing costs and land transfer tax when budgeting for a purchase.
  • Not getting mortgage pre-approval before house hunting.
  • Assuming Indian property ownership history counts toward Canadian mortgage qualification.
  • Not verifying eligibility under the foreign buyer ban based on current immigration status.

Official Resources

  • CMHC Homebuying: cmhc-schl.gc.ca/en/consumers/home-buying
  • Canada.ca Foreign Buyer Ban: canada.ca/en/department-finance/programs/consultations/2022/prohibition-purchase-residential-property-non-canadians.html